Ensuring Payroll Compliance with Expert Precision
Staying compliant with UK payroll laws doesn’t have to be complicated. From PAYE and National Insurance to pensions, holiday pay, and statutory entitlements, we ensure every aspect of your payroll is handled accurately and on time. With us, you’ll stay fully aligned with HMRC regulations while giving your employees the confidence of being paid correctly, every time.
- Employers must operate PAYE to collect Income Tax and National Insurance Contributions (NICs).
- Submit Real Time Information (RTI) reports to HMRC every payday.
- Provide employees with a payslip each pay period.
- Penalties apply for late or incorrect submissions.
- Pay employees at least the National Minimum Wage (NMW) or National Living Wage (NLW) depending on age/status.
- Rates change every April.
- Penalties: up to 200% of arrears (capped at £20,000 per worker), plus public “naming and shaming.”
- Employees are entitled to 5.6 weeks’ paid holiday per year (pro rata for part-time).
- Follow the Working Time Regulations: max 48 hours per week on average (unless opted out).
- Recent case law: overtime, commission, and bonuses may need to be included in holiday pay calculations.
- Employers must pay statutory entitlements correctly:
- Statutory Sick Pay (SSP)
- Statutory Maternity Pay (SMP)
- Statutory Paternity Pay
- Shared Parental Pay
- Statutory Adoption Pay (SAP)
- Incorrect calculations may result in HMRC penalties and employee claims.
- Employers must automatically enrol eligible workers into a workplace pension scheme.
- Minimum contributions (as of 2025): Employer 3% + Employee 5% of qualifying earnings.
- The Pensions Regulator can issue fines for non-compliance.
- Employers must keep payroll records for at least 3 years (recommended: 6 years for audits).
- Records include wages, deductions, RTI submissions, pension details, and employee information.
- Provide employees with a P60 by 31 May each year.
- Submit the final Full Payment Submission (FPS) to HMRC for the tax year.
- Provide a P45 when an employee leaves.
- Payroll data is personal data under UK GDPR & Data Protection Act 2018.
- Employers must process, store, and share payroll data securely and lawfully.
- Employers must comply with the Equality Act 2010.
- Equal pay must be given for equal work, regardless of gender or protected characteristics.
- Contractors must deduct tax at source from subcontractors’ pay and pass it to HMRC.
- Strict reporting and verification rules apply for construction businesses.
- Employers with annual payroll bills over £3 million must pay the Apprenticeship Levy.
- Charged at 0.5% of the total pay bill, reported and paid via PAYE.
- Benefits such as company cars, private health insurance, or allowances must be reported to HMRC.
- Employers file P11D forms annually, and Class 1A NICs are due on these benefits.
Penalties for Non-Compliance
- HMRC fines for late or incorrect RTI submissions.
- Interest and penalties on late PAYE payments.
- The Pensions Regulator fines for auto-enrolment breaches.
- “Naming and shaming” for NMW/NLW underpayment.
Ready to simplify compliance? Contact our team today for expert payroll support tailored to your business.