The Impact of Payroll Penalty Charges
When payroll is not managed efficiently and effectively, it can cause serious negative impacts to a business, whatever its size and function may be. In addition to staff not being paid correctly and on time, HM Revenue and Customs (HMRC) can impose hefty fines on businesses who make even small mistakes when handling the complex task of payroll management. New data obtained by payroll software giant MHR has revealed the true cost of these penalty charges for businesses in the UK.
MHR provides a wide range of software to the finance, payroll, human resources and workforce management sectors. The family-run company was founded in 1984 by John Mills who remains the Group Chairman to this day; operating from its Nottinghamshire headquarters, MHR supports the development, payment and management of more than 10% of the UK's workforce.
Penalty charges are issued to companies who 'repeatedly infringe on payroll reporting requirements', either by making incorrect reports or by not reporting at all. The data obtained by MHR reveals that the total amount of these penalty charges imposed on UK businesses since 2020 is a staggering £75,154,200 at the time of writing. More than 25% of this amount was issued in the previous financial year; clearly, this money could have been put to far better use in other areas of the penalised companies.
Commenting on the shocking data, the CEO at MHR, Anton Roe, said: "The fact that UK businesses are paying HMRC well over £75 million 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%." He also noted that proper payroll management can help to save even more money in terms of staff retention, avoiding the need to shell out on repeated recruitment and training processes.
Here at Bachmann Group, we specialise in the provision of payroll management services that can ensure your business never has to receive penalty charges. The members of our cherry-picked payroll management team, who have been selected based on their extensive experience and dedication, work tirelessly using award-winning payroll software and receive constant training to make sure that they are fully up-to-date on the latest changes to vital aspects of payroll management.
Please browse the Bachmann Group website to find out more details about our world-class payroll management services. If you have any questions, our expert customer service team will be happy to answer them so please do not hesitate to get in touch.