March 18, 2014

Payroll has become more time consuming for some, says HMRC

Payroll processing is taking longer than ever for some firms since the introduction of Real Time Information (RTI) last year, according to HMRC research.

Out of the 446 employers surveyed by HMRC, 25% found that reporting their End of Year returns takes much longer now that they have to do it in real time.

The report found that the majority of those surveyed, 79%, asked for help from either HMRC or their payroll provider – with 49% having trouble with technical issues.

A further 28 other employers highlighted concerns with RTI to the Inland Revenue.

Complaining about the number of acronyms in RTI, one said: “There are so many initials – EPS, FPU [sic], and so on. It is easy to get confused. And we are only a little payroll and spend very little time on it that it takes ages to get used to it.”

Others complained about the lack of flexibility of HRMC with RTI – because it prevented them from more urgent tasks crucial to their business.

Remove the burden through payroll outsourcing

Payroll outsourcing can easily help you deal with this issue, as well as having many other benefits…


Under Real Time Information (RTI), you’ll get fined if you fail to submit information to HMRC each time an employee is paid.

This can be financially damaging to businesses who struggle to keep on top of data or work with an unreliable system. With outsourced payroll, it’s all taken care of  by your provider, who will fully prepare you for any upcoming changes.

Cost effective

Consider the costs of employee salaries and benefits, National Insurance contributions, the price of your payroll software and the maintenance fees.

On top of that, you have time costs for training and processing – not to mention the price of paper, ink and stationery!


Payroll processing is not only time-consuming but it also stops employees from tending to important tasks.

By outsourcing this process, your employees can focus on adding value elsewhere, leaving your provider to use the vast technical resources at their disposal to efficiently process your payroll.

Find out more in our payroll outsourcing whitepaper.

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