In a survey carried out by GfK NOP for Her Majesty’s Revenue and Customs, 11% of small employers said they still use manual tables to calculate the tax and NI on their staff wages, despite computerised tools being freely available.
Using the manual tables entails, every pay day, looking up figures in several tables and then combining the numbers using simple arithmetic. For a typical employee, this involves looking up numbers in at least 3 tables and carrying out 8 arithmetic steps. The tables, complete with instructions, can be downloaded from HMRC’s website or ordered by telephone from the HMRC Employer Orderline.
There are many computerised tools available to make calculation of tax and NI simpler. These include commercial payroll packages, web based services and free tools on HMRC’s website.
The Payroll Site is one web based service designed to make payroll calculations simpler. Managing Director, Steven Tucker, said "I'm amazed that anyone has the patience to use the manual tables for anything other than a one-off check. I tried this when I first operated PAYE a decade or so ago and I found it time consuming and error prone – and I’m a maths graduate.". He added “That’s why we first launched our website: to make life easier for small employers, so they can just click a couple of buttons, print their payslips and get on with running their business.”.
When the employers using the manual tables were asked their key reasons, just 1% said it was because it was more accurate. 46% said it was because they were already used to this method, and 25% said they had always used the manual tables. A surprising 37% said it was because they found this method easy, 11% said it saved time and 1% said it was more cost-effective than other methods. Some employers gave more than one reason.
GfK NOP interviewed 1,502 registered employers with fewer than 100 employees. The interviews were carried out by telephone between July 7 and August 8, 2008 and the results were made public in April 2009.
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About The Payroll Site Ltd.
The Payroll Site Ltd provides online payroll services for small UK employers, accountants and bookkeepers. The business was started in 2004 by two brothers, Steven and Kenny Tucker. The service was first launched in April 2004 and the company was registered in June 2004.
The Payroll Site Ltd is based in Barnet, Herts. and serves customers spread across the whole of the United Kingdom.
More information on The Payroll Site Ltd is available at www.thepayrollsite.co.uk
For further information, please contact:
0845 652 6602
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