[UK] ‘Sloppy’ payroll costs businesses £75m in fines

New HMRC data, obtained by MHR, has revealed the substantial cost of incorrect or absent payroll reporting to UK businesses, Business Leader reports.

Since 2020 HMRC penalty charges for companies that repeatedly infringe on payroll reporting requirements have totalled £75,154,200. 

HR, payroll and finance expert MHR found that more than a quarter of these penalties (27 per cent) were reportedly issued in the last financial year alone (April 2022 to April 2023).

This significant chunk of resources could be put to better use elsewhere, rather than paying penalties for issues that automated technology can help avoid. In fact, the finding suggested that many businesses are still not using technology for HMRC reporting.

This week is National Payroll Week; a good time to highlight the need for payroll professionals to take stock and UK businesses to make a change.

Anton Roe - CEO at MHR - said, “The fact that UK businesses are paying HMRC well over £75m because of sloppy payroll reporting is ridiculous and completely unnecessary. This can be easily avoided through the adoption of best-in-class payroll technology as it enables organisations to report in an accurate and timely way while reducing time spent on payroll by 60%.

“Not only do employers save money by avoiding payroll mistakes, but they can also use technology to improve employee financial wellbeing, empowering them to take control of their income with options like early wage access or real-time commission tracking.

“The knock-on impact of these changes can be huge when it comes to retention, saving even more money on recruitment and training. Leading your teams through uncertain economic times can be a monumental challenge, but quick and easy fixes like these can go a long way towards improving the health of your company.”

Source: Business Leader

(Quotes via original reporting)

New HMRC data, obtained by MHR, has revealed the substantial cost of incorrect or absent payroll reporting to UK businesses, Business Leader reports.

Since 2020 HMRC penalty charges for companies that repeatedly infringe on payroll reporting requirements have totalled £75,154,200. 

HR, payroll and finance expert MHR found that more than a quarter of these penalties (27 per cent) were reportedly issued in the last financial year alone (April 2022 to April 2023).

This significant chunk of resources could be put to better use elsewhere, rather than paying penalties for issues that automated technology can help avoid. In fact, the finding suggested that many businesses are still not using technology for HMRC reporting.

This week is National Payroll Week; a good time to highlight the need for payroll professionals to take stock and UK businesses to make a change.

Anton Roe - CEO at MHR - said, “The fact that UK businesses are paying HMRC well over £75m because of sloppy payroll reporting is ridiculous and completely unnecessary. This can be easily avoided through the adoption of best-in-class payroll technology as it enables organisations to report in an accurate and timely way while reducing time spent on payroll by 60%.

“Not only do employers save money by avoiding payroll mistakes, but they can also use technology to improve employee financial wellbeing, empowering them to take control of their income with options like early wage access or real-time commission tracking.

“The knock-on impact of these changes can be huge when it comes to retention, saving even more money on recruitment and training. Leading your teams through uncertain economic times can be a monumental challenge, but quick and easy fixes like these can go a long way towards improving the health of your company.”

Source: Business Leader

(Quotes via original reporting)