Group Payrolls

It is not uncommon in the UK for a collection of companies within a group, formal or informal, to have a separate payroll in each company.

Some group structures of course operate a central payroll through one company and recharge costs to the others as appropriate.

HM Revenue and Customs have gone out to consultation regarding a proposal to allow companies in a group to "pool" their payrolls such that all forms can be delivered under one tax reference, meaning that there would be less overall administration.

HMRC are considering this against a background of tax simplification but the cynical ones amongst us may well be asking, "What benefits might there be for HMRC?".

Clearly there would be a lesser burden for HMRC checking fewer schemes at a time when resources are being thinned down.  Control visits on a scheme would be more cost effective and whilst the monthly PAYE & NI payment would be the same overall, the law may provide for greater prospect of recovery of monies when there is a possibility of insolvency.

This is a consultation at the moment, but very much "Watch this space.".