PAYE – where did the time go?
As employees on a company payroll, the idea of income tax and national insurance being deducted at source is something we're all familiar with. Money owed to HMRC never lands in our bank accounts; instead it goes directly to the government to help fund our public services.
The Pay as You Earn (PAYE) system was introduced back in 1944, to replace the previous method of collecting tax annually or half-yearly. It was a big change that wasn't welcomed by all, despite the government's campaign to educate the public on the benefits of PAYE. This British Pathe clip
from 1944 offers a fascinating glimpse into the lives of taxpayers back then!
In those days, all records would have been kept by hand. Ensuring that payroll details were accurate and up-to-date must have been an incredibly complex and laborious task. Gradually though, computerisation took away a lot of the strain, and by 1984 PAYE was computerised by the Inland Revenue. In fact, some companies had already introduced technology to manage their side of the PAYE task – the first to use payroll software was Lyons Corner Houses as early as 1954.
Into the digital age
Today, sophisticated software is able to process complicated tasks in fractions of a second. But however good the software, it's crucial that the 'real life' staff inputting data and operating these systems are experts in the workings of payroll. Here at AMR, our dedicated team of professionals provides exceptional payroll services using Sage and Xero software packages.
From our offices in Tunbridge Wells and Medway, we work with numerous businesses across the South East and beyond to deliver all aspects of payroll accounting including reports, payslips and liaison with HMRC. We also organise BACS payments and electronic payslips, and deal with the completion of end of year P60s and RTI returns.
Looking to the future
At AMR, we're always au fait with the latest trends and developments that affect PAYE and other bookkeeping duties. We have a forward-thinking culture and encourage ongoing training for all members of our team. Yet, while we embrace tried-and-tested new software or updates, we would never take risks or experiment with new ways of working unless we were absolutely satisfied they were in the best interests of our clients. Accuracy and reliable always come first at AMR.
How can we help?
Our clients find that outsourcing payroll is much more cost effective and time efficient than keeping it in-house. Could your business work smarter with our help? Give us a call to arrange a free payroll health check
meeting with one of our friendly team.