Growth is the most promising sign of a business’s success, and many businesses see growth as an opportunity to tackle new markets.
Rather than braving entirely foreign shores, many businesses utilise the unique position of the UK to expand into different countries that still operate under similar rules and cultural expectations.
However, for English businesses spreading into the devolved nations, there may be a few surprises when it comes to payrolling that should be ironed out before the risk of noncompliance sets in.
What payrolling differences exist across the UK countries?
Each of the devolved nations has its own slightly different approach to payroll that needs to be considered before a business operates there.
Any business operating in Wales needs to follow the guidelines laid out in the Welsh Language Measure 2011.
This regulation specifies that all public bodies, and some private employers, translate core employment documents into Welsh when they are sent to multiple people or at the request of an individual.
Payslips count as core employment documents, so a Welsh language version needs to be ready at the request of an individual.
However, businesses should think about the kind of ethos they want to create with employees and consider whether being proactive is better than reactive.
Knowing that this consideration exists, businesses can build a good rapport with employees by automatically having a Welsh translation on all employee documents, including payslips, to ensure full compliance and a positive reputation.
For businesses operating in Scotland, there comes a challenge around paying employees.
While technically adherents of the UK’s National Minimum Wage, there is a growing culture in Scotland of paying workers a higher rate.
The Real Living Wage campaign encourages employers to pay workers £12.60 per hour rather than £12.21 offered by the National Minimum Wage.
There is no legal obligation to partake in the Real Living Wage campaign, but it can reflect poorly on businesses that opt not to participate.
This could lead to a struggle to recruit potential talent, as they will be looking for businesses that value them.
In Northern Ireland, hybrid working tax reliefs are more responsible for payroll processing than in other parts of the UK.
Payroll teams must ensure that any tax-exempt reimbursements are recognised and documented to avoid unnecessary tax deductions.
How do businesses stay payroll compliant across the UK?
Given that the main rules and regulations are the same across the UK, there are advantages to expanding into the devolved nations as opposed to venturing overseas.
However, each country still has its own culture and regulations that businesses should be aware of and follow.
Seeking professional advice is always advisable as your business grows, and our team is on hand to ensure that you succeed and can continue to grow into the future.
Businesses risk fines and reputational damage by not adhering to payroll compliance, so they should welcome the advice and guidance of accountants on the matter.
To stay compliant with the latest payroll regulations across the UK, speak to our team today.
