Yet again we have been amazed this week by a tail of woe from a client facing a £500 fee from their previous payroll provider for producing a csv file.
This is another instance of a disturbing trend in the payroll profession. Some providers now seem to be hiding exit charges should a client leave for providing the essential information needed to process the next periods wages.
Taking over a payroll mid tax year is now quite a complex procedure. With 4 NI bands to split out, changing payroll provider is not as simple as getting copies of the last set of reports and payslips. However, it is difficult to see how any payroll provider using software accredited to the HMRC Payroll Standard cannot provide this information within a few minutes.
Our conclusion? This practice of charging extortionate figures for information is tantamount to daylight robbery.
In this specific instance our client (20 employees) had already served a 6 month notice period and are now facing a £500 charge and the feeling that they are being held to ransom.
