Finance platform Tide is launching a new payroll service that it says is the first of its kind to be available directly from within a business banking app in the UK.
Small business owners will be able to pay employees using just their Tide account, removing the need for dedicated payroll software. There will be the option for creating automatic pay runs which, says Tide, will reduce the time and effort involved in paying staff compared to previously clunky manual processes.
Tide has been working with payroll platform specialist KeyPay to develop the new system, which is due to be rolled out to customers early in 2021. A series of updates that will offer even greater levels of automation will be unveiled as the year progresses.
Along with the convenience factor of automating the whole payroll process from within its app Tide is aiming to keep costs low too. It’s charging a small fee per payee, which will be an advantage for many small businesses particularly ones that use freelancers and contractors on a casual basis.
Payroll functionality
Tide thinks that in many cases it will also allow SMEs to bypass the high fees charged by accountants who carry out payroll duties, or dispense with conventional payroll software altogether in favour of the app. The Tide payroll functionality is also fully HMRC compliant.
Ali Travis, VP of Business Services at Tide said: “We know a large proportion of Tide members currently run payroll for their businesses, paying themselves, other directors, employees, freelancers and contractors.
Payroll is a complex process for many businesses owners, with remembering to run payroll and ensuring HMRC compliance being the biggest challenges. Tide Payroll will help Tide members to keep on top of running payroll on time and make it easy to remain compliant by automating all relevant reporting to HMRC.”