Across the UK, HR and Finance teams are waiting in anticipation for the Chancellor’s new budget announcement on 11thMarch and how these will affect payroll. We are already aware of the imminent IR35 rules change, the minimum wage increase, and changes to the average week pay calculation. However, there are likely to be other changes that will inevitably affect millions of payslips – and many employees will be unaware of how their take home pay will be affected. For those employees, this means directing tax and pay-related questions to their already overburdened HR/Payroll departments at the start of the new tax year.
According to industry research, 43% of HR queries are related to pay. This percentage increases substantially in April as busy HR/Payroll teams field questions from employees on things like personal allowance, NI thresholds and changes to tax codes. Although the employee’s salary may not have changed, their net pay does – and this causes confusion.
The impact of this will also be felt by accountants and bureaux, as they respond to clients with employees needing clarity on the payslip changes and what it means for them.
Should the Chancellor decide to announce changes that will affect employees paid by PAYE in March, PayDashboard will create a series of guides to help employees understand these in more detail.
2020/2021 Tax Guides
For employers, sharing the guides with their employees before the end of the tax year will alleviate the strain on HR and Payroll teams. For accountants and bureaux offering a payroll service, sharing the guides with their clients helps the client to deal with queries from their staff and enables the provision of a value-add service to clients at the same time, with no extra work from the payroll team.
PayDashboard integrates with your existing payroll software to deliver payslips, PAYE forms and documents in a secure online portal. To find out more: https://www.paydashboard.com/