CIPP Payroll: need to know - 2022-23

`The Chartered Institute of Payroll Professionals

News On Line

Emailed: 20 July 2022

Asda and Next have been under the spotlight as it comes to light that significant payroll errors have left staff out of pocket, with some staff underpaid by £500.

In the companies written response, Asda indicated that its payroll provider, SD Worx, made 10,806 payroll errors affecting 5,529 staff. A worker in Manchester said payroll errors resulted in benefits being cut and another had a shortfall of more than £500 and needed to use food banks, reports The Guardian.

A representative for Asda has said:

“It is imperative that our colleagues are paid correctly and on time and we are sorry this has not been the case for some of them.

“As soon as we were aware of this issue, we took action to ensure that nobody was left out of pocket. We are working closely with our payroll partner and have provided additional support to stores to ensure that this doesn’t happen again.”

Also reported by The Guardian, Next have suffered issues caused by implementation of a new computer system. They have outsourced payroll operations to Oracle and the issues have been know about since February.

In May, next investors backed a 50% pay rise for Lord Wolfson, Chief Executive, who will receive £4.4 million this year. According to The Guardian, Next has “ been forced to assign a dedicated team to try to spot errors and pay the missing money to workers every week. ” While a cost-of-living crisis grips the country it is essential that workers are paid accurately and in a timely manner. Mistakes happen, but these cases highlight the importance of robust processes and contingency planning for if, or when, issues occur.

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Four names added to HMRC’s tax avoidance list. Published: 4 August 2022 Emailed: 10 August 2022

Her Majesty’s Revenue and Customs (HMRC) has added 4 companies to a list of tax avoidance scheme promoters, enablers and suppliers.

The additions added were:

• • • •

Countrywide Partners Limited (CPL)

Industria PAYE Limited (IPL) Pure Invoicing Limited (PIL) U R Group Limited (URGL)

The schemes added paid users in 2 separate payments. The first being an element at or near National Minimum Wage, taxed via PAYE, and the second as a loan or grant agreement, not taxed.

It is clear HMRC is ramping up activity in this area. Any individual or company that suspects tax avoidance schemes are being used or promoted is encouraged to contact HMRC.

HMRC is also clear that this is not a complete list of tax avoidance schemes and any absence from their published list did not mean a scheme is approved by them.

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£1 million fine give to tax avoidance promoter Published: 5 August 2022 Emailed: 10 August 2022

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