Payroll Services

What does outsourced payroll include?

Payslips, Real Time Information (FPS) to HMRC on or before payday, PAYE and NIC calculations, and usually pension auto-enrolment files. P45s, P60s and P11Ds should be named in the letter. CIS is extra unless you are a construction employer and asked for it.

The legal duties still sit with you as the employer. A bureau files; you remain responsible if someone is paid wrong. Ask who to call on payday if the FPS fails.

Do I need outsourced payroll, or can software do it?

Software can run RTI if you will check every FPS, payslip and pension file on time. Outsource it if you have staff, CIS, or no appetite for HMRC letters. A director-only company with a simple salary often sits inside the limited-company package rather than a separate bureau.

Employers must report pay to HMRC on or before each payday (Real Time Information). Auto-enrolment duties sit with you even if a bureau files the payslips. Construction businesses adding CIS need that named in the quote — it is not always in the base fee.

How much does outsourced payroll cost in the UK?

Expect about £15–£35 per month as a base fee plus roughly £5 per employee on our editorial benchmarks. CIS and pension administration may add more. Always ask for the figure including the first three employees, not the empty headline.

Cheap quotes often exclude auto-enrolment, P11Ds or year-end work. Compare three written scopes. If you have no staff, do not buy payroll — say so on the comparison wizard so the match is not padded.

What is RTI, and when is the FPS due?

Real Time Information means you tell HMRC who you paid, and how much, on or before each payday via a Full Payment Submission. Late or missing FPS filings create letters and, eventually, penalties. A bureau that files a day late is not cheap.

New starters and leavers have extra forms. Statutory pay (SSP, SMP) is easy to get wrong. If your accountant also runs the company accounts, keep payroll and the accounts on the same software so the wages journal matches.

When is the P11D deadline?

P11D and P11D(b) reporting is normally due by 6 July after each tax year. For 2025/26, that deadline was 6 July 2026. Some benefits are payrolled instead; confirm which reporting route applies to your employees.

Missing benefits reporting is a classic HMRC letter. Company cars, medical cover and cheap loans are the usual items. Confirm current dates on GOV.UK if you are reading this after our review.

Does a one-person limited company need payroll?

If you take a salary, yes — even a small one. If you only take dividends, you may not need a monthly bureau; you still need dividend paperwork and a CT600. Many company packages include a simple director payroll.

National Minimum Wage and National Insurance thresholds change. Do not copy last year's salary without checking. A contractor inside IR35 on an umbrella is buying umbrella payroll, not this add-on.

How should I choose a payroll bureau or accountant?

Ask who files the FPS, which pension provider they connect to, and whether auto-enrolment is in the price. Check a professional-body register if they are an accountancy firm. Compare the all-in cost for your actual headcount.

Same-day corrections matter more than a pretty portal. CIS, construction and hospitality rotas are specialist — say so up front.

1. Count employees and whether anyone is on CIS or statutory pay
2. Ask for a quote that includes auto-enrolment and P11Ds
3. Confirm payday cut-off times in writing
4. Keep payroll and accounts on the same software where you can