Flip-flopping furlough and the rising complexity of payroll
23rd Nov 2020
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First furlough. Then the Job Support Scheme. Then furlough again!
Who knows what will come next?
A flip-flopping topsy turvy world of ever-changing legislation makes now surely the most complex time for payroll for many years.
Let’s throw busy season into the mix as well for one further layer of difficulty.
What changes have been occurring?
When the pandemic hit, we all got familiar with a new word that is now a staple for 2020 – furlough. Otherwise known as the Coronavirus Job Retention Scheme, it left businesses scrambling to understand the implications. Of which, there were many for HR and payroll.
The Government pledged to wind down the scheme, with its eye-watering expense causing alarm in Whitehall. That was the plan before the second national lockdown. It was due to end in October, to be replaced by the Job Support Scheme (JSS). But the Chancellor changed course again following the November lockdown announcement, putting the JSS on ice (if not scrapping entirely), with furlough extended again, instead, until March 2021.
Is now the time to consider outsourcing?
With the increasing complexity of payroll, created by furlough and the JSS (or whatever comes next), it could be time to consider a change from running payroll in-house.
Some accountants already outsource parts of their workload – payroll in particular - to ease the strain on their teams.
One accountancy practice who has reaped the benefits of effective payroll outsourcing is The Buxton Partnership, which uses IRIS Resourcing.
Geoff Glover, Tax Partner, says it has become vital for both payroll and getting through the January tax busy season in recent years.
Why has outsourcing helped?
“Ultimately IRIS Resourcing, has enabled us to bring on more customers. As a small practice, it’s been critical to our growth.”
And it’s also been vital during the pandemic, he explains: “Had we been a practice who did everything in-house, to suddenly deal with these problems caused by COVID-19, and the increased workload through the furlough and self-employed income support scheme, it would have been a big worry. But outsourcing with IRIS has become a fundamental part of our business.”
Read the case study in full here.
How can Taxfiler help?
We have teamed up to help you with outsourcing through IRIS Resourcing – a service providing a full team of highly qualified accounts and payroll staff. The service is ISO 9001:2008 certified and complies with the UK Data Protection Act and GDPR.
Looking for more information about Taxfiler’s accountancy and tax software?
Why not sign up to one of our FREE weekly product demo webinars here or visit our website taxfiler.co.uk