Managing payroll can feel like navigating a minefield for small business owners especially with constant changes in legislation. From staying compliant with HMRC regulations to ensuring employees are paid correctly and on time, payroll errors can lead to costly penalties, unhappy staff and a lot of unnecessary stress.
At Purple Accounts, unfortunately every day we see how easy it is for business owners to make mistakes, especially when they’re juggling payroll with the many other demands of running a business. It's a myth that you save money and it's certainly not going to save you any time. We would never do our own electrics, plaster a wall or cut our own hair - so why would you do you own payroll?
Here are the top 5 payroll mistakes we see and how you as a business owner can avoid them:
Mistake 1: Missing HMRC deadlines
The problem:
HMRC requires employers to submit Real Time Information (RTI) reports every time they pay their employees. Missing these deadlines can result in fines and damage your relationship with the tax authorities.
How to avoid It:
Stay on top of submission dates by setting reminders or using payroll software with built-in alerts. Alternatively, let Purple Accounts take care of this for you. Our payroll services ensure that your submissions are accurate and on time, every time.
Mistake 2: Miscalculating PAYE and National Insurance Contributions
The problem:
Incorrectly calculating PAYE or National Insurance (NI) contributions can lead to underpayment or overpayment, both of which can cause issues with HMRC - and your employees.
How to avoid It:
Keep up with the latest tax thresholds and rates, or better yet, outsource payroll to experts. Purple Accounts uses advanced tools and expertise to calculate PAYE and NI accurately, saving you time and ensuring compliance.
Mistake 3: Failing to Auto-Enrol Employees in Workplace Pensions
The problem:
Under UK law, most employees must be automatically enrolled in a workplace pension scheme. Failing to do so—or not contributing the correct amounts—can result in penalties.
How to avoid it:
Understand your legal obligations regarding auto-enrolment and workplace pensions. Not sure where to start? Purple Accounts handles pension enrolments and contributions for you, ensuring you stay on the right side of the law and HMRC. Why would you stress about it and DIY? Payroll outsourcing is easy, essential and affordable.
Mistake 4: Overlooking Employee Benefits and Expense Reporting
The problem:
Forgetting to report taxable benefits or reimbursed expenses, such as company cars or travel allowances, can lead to inaccuracies in your payroll and additional tax liabilities.
How to avoid It:
Maintain a clear record of all employee benefits and expenses. Our team at Purple Accounts helps you track and report these accurately, so there are no surprises when it comes to HMRC compliance.
Mistake 5: Trying to Manage Payroll Without Support
The problem:
Managing payroll in-house without proper training or systems can be overwhelming and increase the risk of errors. Many small business owners underestimate the complexity of payroll and end up wasting valuable time.
How to avoid it:
Don’t go it alone and be a DIYer! By outsourcing your small business payroll to Purple Accounts, you’ll gain access to a team of experts who handle everything from payslips to HMRC correspondence. This not only reduces stress but also frees up your time to focus on growing your business. What's not to love!
Why choose Purple Accounts for your small business payroll service?
At Purple Accounts, we understand that payroll is more than just numbers—it’s about keeping your team happy, staying compliant, making your life easier and protecting your business from avoidable risks. Our payroll package is perfect for small businesses and for a fixed monthly fee plus payslips you can tick it off your list and have complete peace of mind. We help business owners in Warrington, Cheshire and all over the UK. Check out our 5* Google reviews here.
Here’s what you can expect from our small business payroll services:
Accuracy: We handle all calculations, submissions and compliance with HMRC.
Expertise: Trusted since 2007 with hundreds of small businesses.
Proven: Most 5* rated in Warrington on Google.
Approachable: Family owned with a small, friendly team.
Peace of Mind: No more missed deadlines or penalties.
Flexibility: We work with businesses of all sizes and locations.
Time Savings: Free up your valuable time and leave the admin to us.
What Is Auto-Enrolment?
Auto-enrolment is a government initiative introduced in 2012 requiring employers to automatically enrol eligible employees into a workplace pension scheme. While well-intentioned, the rules can be intricate, leaving business owners at risk of non-compliance.
Why Does Auto-Enrolment Matter?
Failing to comply with auto-enrolment requirements can result in significant penalties. Between January and June 2024 alone, 28,359 fines were issued across the UK for auto-enrolment breaches, with London and the North West among the top regions for non-compliance.
These penalties range from £400 fixed fines to escalating penalties of up to £10,000 per day depending on the severity of the breach.
Many small business owners unintentionally fall foul of the rules due to:
Missing deadlines for enrolling new staff.
Failing to re-enrol employees every three years.
Mismanaging contributions or failing to submit records.
The costs of non-compliance go beyond monetary fines. It can harm employee trust and damage your business’s reputation. It's just not worth the hassle.
Payroll service for small business
How Purple Accounts Can Help
At Purple Accounts, we understand that payroll isn’t just about paying employees—it’s about maintaining compliance, ensuring accuracy and avoiding unnecessary costs.
Our payroll service for small business simplifies the process for you, providing:
Full auto-enrolment support: From setting up workplace pensions to re-enrolment reminders, we’ll handle it all.
Real-time compliance checks: Ensuring you meet deadlines and avoid penalties.
Stress-free payroll management: Calculating PAYE, National Insurance, and other deductions, so you can focus on growing your business.
Ready to Streamline Your Payroll?
Don’t let payroll mistakes hold your business back. Contact Purple Accounts today to learn how payroll outsourcing can take the hassle out of payroll and help your business thrive. We help business owners in Warrington, Cheshire and across the UK.
Contact Purple Accounts today on:
01925 979500 or email:enquiries@purpleaccounts.com
Коментарі