Compliance in Payroll Services: What You Need to Know

Compliance is a necessity for every single payroll provider in the UK. If you’ve been looking for a payroll provider online, you might have seen a lot of providers listing ‘compliance’ as one of their selling points on their website. But, compliance isn’t a selling point; it’s a requirement.

While it can be a time-consuming task for many payroll providers, it’s absolutely essential that they comply with the latest laws and regulations set in place by the relevant bodies and organisations in the UK. Ultimately, payroll companies must be fully compliant and transparent in all aspects of their payroll services.

In this blog, we take a closer look at the importance of compliance in payroll services, as well as highlight how HMRC is dealing with companies taking part in tax avoidance schemes. Continue reading to learn more and if you’d like to contact us, please reach out via the details below.

The Importance of Compliance

The importance of compliance for payroll providers cannot be emphasised enough. Put simply, every single payroll provider operating in the UK is responsible for ensuring that accurate information is reported to HMRC and other relevant bodies. All payroll providers need to comply with the relevant laws and guidelines in the UK. 

As we’ve mentioned above, this is a requirement and shouldn’t be used during a sales pitch, it should be a given. Failure to comply with applicable laws and regulations can have serious consequences for both providers and their clients. 

As part of being fully compliant, payroll providers must also ensure that they comply with employment laws. This includes understanding the proper way to classify employees and ensure that they are paid in accordance with the applicable laws. 

Payroll providers must stay abreast of changes in the law and ensure that their payroll processes are compliant with any new applicable laws and regulations. Doing so will help to protect them and their clients from costly fines, penalties and other sanctions.

How HMRC is Naming and Shaming Companies

Tax avoidance schemes continue to be marketed in the UK in 2023. Now, HMRC is naming and shaming companies that are taking part in these schemes, with information about involved parties being updated on a regular basis.

If you head over to the link above, you can see a comprehensive list of tax avoidance schemes currently being marketed, and additional information about all promoters, enablers and suppliers. This is not a complete list, but it is a regularly updated list that’s very useful. HMRC does not approve any tax avoidance schemes for use.

Looking for a Trusted Payroll Provider in the UK?

Searching for a reputable payroll provider in the UK? Then Clockwork Contracting is the provider to choose. We are a leading company specialising in payroll services, providing a professional, reliable and transparent service to every client, no matter how big or small.

Our payroll experts provide cost effective payroll services, effectively taking over management of your payroll and ensuring that compliance and transparency are met from start to finish. If you would like to find out more about our payroll services, then please do not hesitate to contact us today. You can reach us by phone on 0203 004 2262 to speak with a member of our team; we look forward to hearing from you soon.