350,000 Small Businesses Face Payroll Year End Issues
Over a quarter of small and medium firms feel changes to Auto Enrolment and Real Time Information PAYE have made the payroll year end procedure more complex
As the April 5 deadline for Payroll Year End (PYE) approaches an estimated 350,000 small and medium sized businesses will experience submission issues, according to new research by accounting software group Sage.
The survey, which featured 355 business owners, revealed that 27% of small and mid-sized business owners believe that PYE compliance has been made more confusing due to Auto Enrolment and Real Time Information (RTI) PAYE compliances.
This, combined with the record number of start-ups registered last year (581,173), may result in more small businesses being penalised because of incorrect submission, with one in 50 having already faced fines in the past.
According to the respondents, problems with PYE submissions could be avoided by using the right software, being organised and through seeking advice from a professional.
Over 44% of small and medium enterprise owners stated that software could make the process less problematic, 39% believe that the right allocation of time will prevent issues and 11% state that working with an accountant is most helpful.
Sage One UK general manager, Nick Longden, commented on the research:
“Many businesses see Payroll Year End as a necessary evil, and despite the advent of RTI it can still be a big challenge for firms. The Chancellor’s Budget announcement that the Annual Tax Return is being abolished will have been music to the ears of many entrepreneurs, but the reality of Payroll Year End means they could still face an equally large challenge.
“The key is to be in control, so owners need to take some time and act in advance. Failure to do so could lead to a fine due to rushing and making mistakes with the figures being submitted.”
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