Today, 7 September 2008, 22 million basic rate tax payers in the UK have their Tax-code changed from 543 to 603. The change is due to an extra raise in personal allowance - a government decision to get back in the good books of many since the 10p debacle.
The change in code means payroll systems have to be adjusted too and recalculation of the PAYE (Pay As You Earn) to be deducted from the wages has to be applied. I know a good deal about bookkeeping but tackling the payroll for our two-man-woman-band is completely different matter IMHO.
In 2004 I found this excellent Internet Payroll system and haven't looked back since. Able Internet Payroll Ltd makes calculating PAYE, net-wages, NI etc a doodle. The system is user friendly, accredited by HMRC and has a 100% success score in E-filing (which we've done from the beginning and hence received the total amount of 'discount' from the 'tax-man' for voluntary E-filing, just for clicking some dedicated links in the Able Payroll software!).
And it is also very cost-effective: for 1 - 10 employees the annual costs are £ 50.00 (per company, not per employee).
Ending a tax year and starting a new one every year in April (for someone used to calendar financial and income tax years - Jan to Dec - really odd) in the Able Internet Payroll system is made rather simple, just follow the clear instructions on screen once you click the extra large button Able makes around that time (hard to overlook).
So I was kinda hoping that this extra tax-code change would be made easy too by them - making mistakes in PAYE to be paid to HMCR is not something I was looking forward too.
I shouldn't have worried. When I clicked on the User-Sign-In link I landed on a 'sub-page' which happily told me that I could Globally Update the Tax Code in the system. Able Internet Payroll had created a one-button system to do the work for me. And it really took only one click.
Of course there was an opt-out option too: not every employee of every business has the basic-rate tax code, so in some businesses the person responsible for the payroll will have to update their codes 'manually'.
But for us and with 22 million basic rate codes I think for many small businesses Able Internet Payroll made business life real easy again.
Makes you wonder why other service companies try to make life so difficult - I'm still waiting for 9 months worth of credit notes from one company for a PDQ device we returned with the rep the same day it arrived. They keep sending me an incorrect invoice every month and every month I send it back - the note I write on it shows an increased level of irritation. But that's a whole other story - a whole commedy in fact (that's a pun intended on the company's name:the Italian word for commedy is....?)