Sky News received some insider info that KPMG UK had a bit of a tax problem last week, relating to the firm’s legal structure and employee contracts. This is on top of a payroll issue last week that meant staff checks arrived late.
The fiasco is understood to have arisen as a result of HM Revenue & Customs being provided with incorrect documentation by a third party following the simplification of the legal structure of KPMG companies.
Sources said UK employees’ contracts had been transferred from KPMG UK Ltd to KPMG LLP on April 1 – a process which did not involve any changes to their terms and conditions.
However, a clerical error is understood to have resulted in the change being communicated to the tax authorities with effect from the 2023-24 tax year.
A source close to the firm insisted that the issue had not resulted in any incorrect payments being made to staff.
The article goes on to describe a “payroll processing problem” on ADP’s end that caused KPMG staff paychecks to arrive in bank accounts a few hours later than scheduled last week. You may remember ADP at the center of a payroll issue at EY last summer that caused numerous overdrafts when salaries were mistakenly clawed back from tens of thousands of US employee bank accounts. The issue has been resolved on ADP’s end, said KPMG.
A KPMG UK spokesperson said: “We are very sorry to our colleagues who were affected by this issue from our provider. We will ensure that none of our people will be left out of pocket as a result.”
What’s the King have to do with it? Bit of an insult to the readers intelligence!
What? We’ve always referred to UK firms as “The Queen’s” [Big 4 firm]. It’s just another way to say firms in England, calm down.