Looking Back at Payroll in the Pandemic of 2021!

Author: Kay Augustus (ACIPP) Head of LHP Payroll

Payroll is an ever-rolling ball. One deadline finishes, the next is regenerated and the countdown is on. We’ve once again packed a lot into this year. From finishing furlough to supporting our new Tenby and Cross Hands payroll clients. We processed over 51,000 payslips this year, a number that’s constantly growing! We also went live with our new Modulr automated payroll app service.

Our team has battled many obstacles and changes in 2021. I for one am proud of our payroll team at LHP. We’re all working mums with key worker husbands and managing homeworking, home-schooling and all of the above payroll changes throughout the pandemic. All with a smile on our faces. Hopefully, next year, we will put more faces to names and meet more current and new clients.

2022? Bring it on!


Let’s start with the ‘f’ word, furlough. We claimed £4.7m for our clients in furlough money across the course of the last 18 months, battling with the ever-changing schemes and guidance with our team working from home for a good portion of this. Furlough became ‘the new normal’ for us for some time, so it’s nice to finally have some breathing room back to assist clients with their day-to-day now that they too have found their new normal.

Covid SSP

Until September, we were able to claim a rebate in any Covid SSP (statutory sick pay) for our clients, and we did claim back nearly £10,000 from HMRC for Covid-related sickness. Sadly, we saw increased redundancies among client payroll, but it wasn’t quite as dire as the press initially reported.

Off-Payroll Rules (IR35)

IR35 (off-payroll contractor rules) was postponed to 2021 from its original 2020 date due to the pandemic. In addition, tens of thousands of contractors moved on to payroll due to the rollout of off-payroll (IR35) – the rules saw a clampdown on those trying to avoid payroll taxes.

Modulr – Automation App

This year, we trialled and released a new payroll automation called Modulr, which enables us to pay clients’ employees and PAYE on their behalf. This integration gives businesses freedom to take a well-deserved break while knowing their payroll is all sorted and their staff paid and happy.

Our Team Grew Bigger!

Right at the end of last year we saw the addition of our new LHP Tenby office and a resulting influx of 120 new payroll clients all at once, but LHP didn’t stop there. In April 2021 we saw another 92 clients added to our payroll with the acquisition of our new Cross Hands office.

In September, we celebrated ‘National Payroll Week’ and clients got to e-meet the payroll team and learn some personal things about us in personal interviews across the week. They learnt that when I’m not managing their payroll I’m a keen baker, Teleri has donated her own bone marrow – and Nerys loves a pint of Guinness.

What 2022 Looks Like

2022 is set to be another busy year for LHP payroll. The personal allowance and base rate limit will remain at 1257L, or C1257L for Wales and frozen until 2026. A new ‘Health Levy’ will apply from 6 April 2022. There’ll be a temporary rise in National Insurance rates payable on all earnings above primary threshold for employees – and secondary threshold for employers. This is to support NHS funding. The increase will see a rise of 1.25% to Class 1, 1A, 1B, and Class 4 NI for self-employed people.

We’d like to thank our clients for their continued time with us and for their resilience and positive attitude throughout – and wish you all a Nadolig Llawen a Blwyddyn Newydd Dda.

Let’s Talk

If you need help with your payroll to free up time to focus on your business, please get in touch on let’s talk!

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