PAYE is second biggest tax burden

According to the results of a recent survey conducted by the British Chambers of Commerce (BCC), PAYE is the second biggest compliance burden to businesses in the UK, with 54 per cent of those polled complaining about it.

The survey of its members found that the vast majority of UK businesses believe the cost of complying with the tax system has escalated over recent years, with 64 per cent complaining that VAT creates the biggest administration and compliance burden.

According to the BCC, firms of all sizes now routinely cite tax administration and compliance, rather than regulation, as their biggest single source of administrative headaches.

A spokesman for the organisation said that HM Revenue & Customs (HMRC) must therefore be given both resources and a clear remit to focus more on supporting, rather than pursuing and punishing, small and medium-sized firms, as they work to get tax right.

However, even though the majority of firms appear to find it a headache and a costly exercise, separate research from the BCC suggests that most businesses will give their employees pay rises of over two per cent in the next year, and six per cent of these businesses will give pay increases of over five per cent.

When asked about increases in the National Living Wage over the next three years, 37 per cent said they would respond by raising the price of products and services, while 23 per cent said they would take lower margins and profits to absorb the rises.

As a spokeswoman for the BCC said, this is good news for employees who have felt their wage growth barely exceeding inflation for a long time.

At Moore Thompson, we understand that many businesses find keeping on top of their payroll and HR duties challenging, which is we have set up MT Pay and MT HR.

MT Pay is our expert payroll and workplace pensions department, designed to provide our clients with a fully holistic payroll service.

By comparison, MT HR is an end-to-end HR solution which our team can tailor to the specific needs of your business.

Get in touch with Moore Thompson today to find out more.

Posted in Business News.