Reasons To Outsource Your Payroll
Outsourcing your payroll can bring a whole host of benefits. Not only is the practice a great method for saving time and avoiding the complexity of administration, it also ensures you remain in full compliance with HMRC, either as a contractor or when operating as an agency.
IR35 Tax Legislation
Modern payroll solutions such as App Paye ensure you remain IR35 compliant. The IR35 tax avoidance legislation is designed to tighten the rules of off-payroll working, such as when operating limited companies or using an intermediary service.
By utilising umbrella companies and outsourcing your payroll, all tax affairs and employee payments will remain accurate and fully HMRC compliant. You will also ensure you correctly calculate pensions, holiday payments, sick days, maternity leave, and more. This leaves you with more time to focus on what you do best:
making money as a contractor or managing your client portfolio as an agency.
Aside from these major benefits, there are a number of other notable reasons for outsourcing your payroll. These include:
- Accuracy and reduced costs – Having a fully-equipped, outsourced payroll team means employee payments remain accurate. This can prevent further problems down the line, ensuring hassle free payments and correct tax collection.
- Maintain privacy and security – Having a dedicated outsourced payroll solution ensures you maintain high levels of confidentiality and security. This means you will stay compliant with all relevant data protection legislation, such as GDPR.
- Reduce the need for training – Hiring staff to manage your payroll and investing in ongoing training can be costly. By outsourcing, you free up time to spend on other key areas of your business, saving time and money.
- Scalable on demand – Outsourced payroll services enable you to scale up your operation according to demand. This is why payroll solutions such as App Paye grow with you.
The Changing Nature of Payroll
In the modern age, new payroll technologies have emerged to give you a distinct advantage, either as a contractor or as an agency. Paying wages and handling tax can be made surprisingly simple with a service such as App Paye. This app-based outsourced payroll service lets you manage tax compliance and employee pay at the click of a button, wherever you may be. It is flexible, cost effective, and offers a fully managed payroll system. Additional benefits of App Paye include:
- Become an employee – You become an employee of an umbrella company but have the ability to take on as many jobs as you wish. As an employee, you qualify for holiday pay, sick pay, a company pension, and more.
- Instant payment requests – App Paye’s user-friendly interface lets you submit timesheets and request payments in an instant, 24/7.
- A suite of rewards – As a contractor, you can gain access to discounts at high street stores, gyms, cinemas, travel agencies, and more.
- Single point of contact – App Paye enables you to focus on managing your client portfolio by means of outsourced payroll and employee management. This means you can concentrate on placing individuals into the most suitable roles.
- Client retention – Having a centralised, fully managed payroll solution means your clients will be paid on time and with accuracy. This ensures maximum client retention and also improves your ability to attract new clients.
- Security and privacy – App Paye’s in-house legal team constantly keep updated with the latest employment and industry legislation requirements. This ensures you never fall foul of HMRC.