Author: JP / / Latest News
HMRC collected a total amount of £737m additional in taxes and penalties as a result of investigations into payroll tax errors in 2014/15, according to data collected by UHY Hacker Young.
Small and medium sized firms accounted for more than half of the additional tax collected, with £373m paid to HMRC, despite being responsible for just 11% of total UK payroll.
In comparison, larger firms that make up the remaining 89% of UK payroll paid £363m in additional taxes and penalties.
UHY Hacker Young believes HMRC’s overly complex tax system is causing small and medium sized firms to make errors unwittingly.
In particular, the research suggests many small business owners are unsure how to determine which payroll tax bracket their employees belong to because they employ temporary and flexible workers, or because the firm operates as an umbrella company.
Follow the link for more information: http://economia.icaew.com/news/may-2016/hmrc-collects-additional-737-million-from-crackdown-on-payroll-tax-errors