PersonalTax

45% of SMB employees have paid too much tax due to paycheck errors

Some 45% of SMB employees across the UK have paid too much tax as a result of being on the wrong tax code or through errors with deductions, according to the latest industry figures.

The research by Intuit QuickBooks also found that 77% of SMB employees incorrectly believe it’s not their responsibility to check they’re paying the correct amount of tax, 66% of SMB employees don’t realise having multiple jobs affects their tax and 19% of SMB employees don’t even check their payslip.

Almost a quarter (23%) of all employees have four or more regular deductions from their gross pay, such as travel loans, childcare vouchers, student loans, gym memberships and medical insurance.

It has also found that overpaying tax due to payroll issues was just as prevalent across employees of companies of all sizes, but employees of smaller businesses are “far less likely” to even check their payslip for mistakes.

Shaun Shirazian, head of product at Intuit QuickBooks UK, said: “Many of us can feel a bit lost when checking our payslips and feel unsure about the multiple factors that contribute to our adjusted pay.

STORY CONTINUES AFTER ADVERTISEMENT

“Taxes are complex and the research shows that significant overpaying of tax is caused by payroll issues, such as being on the wrong tax code, or errors with deductions such as childcare vouchers.”

He added: “Less than a third of employees (31%) think it’s their responsibility to make sure they’re paying the right tax. And with nearly one in five (19%) calling out small business owners as responsible, we want to back SMBs and help them educate their employees about payslip information and whose responsibility it is to get it right.”

Back to top button

Please disable your ad-blocker to continue

Ads are the primary way in which publishers generate the revenue needed to pay their staff. If we can't serve ads, we can't pay journalists to write the news.