Small businesses in the UK spend on average £300 (for business with 50 employees) per payroll totaling £1.7bn (for 5.8 million small businesses in UK) spent per payroll run. Each payroll consumes time on administration and money on handling it, according to UK business banking platform Tide.
How tide help in simple process and cost-reduction?
Tide’s findings come ahead of the launch of Tide Payroll, in partnership with KeyPay, which will allow business owners to dramatically reduce the amount of time and money spent on running Payroll. Tide will charge £5+VAT per month, plus £1+VAT for each employee payroll is executed for. This means that for a business with 10 employees the cost of running payroll with Tide would be £15 per pay run, or £180 + VAT per year vs the £133 per pay run that they currently spend, on average, which mounts up to over £1,596 per year.
“The nature of work and running a business is changing, with freelancers and contractors being used more and more by small businesses. It is therefore essential that business owners have a quick and simple way of paying those who do work for them. Working out different tax contributions and salaries each month can be costly and cause a real headache – so we have created a product that streamlines the process and gives Tide members confidence that they are making the correct payments each month.”
Chris Deeson, UK Country Leader, KeyPay said: “As experts in payroll we have witnessed the cost and difficulty posed by the traditional ways of conducting payroll. The pleasant thing that Tide is doing is to look at their clients and rigorously focus on solving their real life challenges. Tide Payroll is simple to set up and delivers all aspects of automated payroll; be it compliance, pensions, accounting integrations and of course ultimately payments. This is next generation stuff, because nobody sets up a small business to run payroll, but everyone wants to pay on time and without fuss.”
Tide Payroll will be rolled out soon, designed for simplicity and cost-reduction as primary goals. Tide members will be able to process the employee payments from their account with the assurance of a complete HMRC complaint.