Payroll Process

Expert Payroll Management Solutions

Managing payroll in the UK involves much more than simply paying staff. From calculating salaries, tax, and National Insurance to reporting in real time to HMRC and handling pensions, every step must be accurate and compliant. We take care of the entire process for you, ensuring your employees are paid correctly and your business stays fully aligned with UK payroll regulations.

  • Gather NI number, tax code, bank details, starter/leaver forms (P45, P46, or Starter Checklist).
  • Calculate based on salary, hourly rate, overtime, bonuses, or commission.
  • Include allowances (e.g., travel, shift pay, subsistence).
  • Ensure pay complies with National Minimum & Living Wage rates.
  • Statutory deductions: Income Tax (PAYE) and National Insurance Contributions (NICs).
  • Other deductions: pensions, student loans, child maintenance, court orders.
  • Account for statutory payments: Sick Pay (SSP), Maternity/Paternity, Adoption, Shared Parental Pay.
  • Net pay = Gross pay minus deductions.
  • Provide itemised payslips showing pay, tax, NICs, and other deductions.
  • Ensure compliance with the Employment Rights Act 1996 (payslip requirements).
  • Submit a Full Payment Submission (FPS) to HMRC every payday.
  • Submit an Employer Payment Summary (EPS) if adjustments or statutory recovery apply.
  • Late or incorrect submissions can result in penalties.
  • Assess employee eligibility for workplace pension schemes.
  • Automatically enrol qualifying staff and deduct employee contributions.
  • Pay employer contributions (minimum: 3% employer + 5% employee of qualifying earnings).
  • Keep payroll records for at least 3 years (6 years recommended).
  • Records include wages, deductions, RTI submissions, pension contributions, and employee details.
  • Issue P60s to all employees by 31 May.
  • Provide P45s to leavers.
  • Report benefits and expenses (P11D forms) by 6 July.
  • Submit final FPS/EPS to HMRC for the tax year.
  • Contractors must deduct tax from subcontractors’ pay and send it to HMRC.
  • Monthly CIS returns required for businesses in the construction sector.
  • Employers with annual payroll bills over £3 million must pay the levy.
  • Charged at 0.5% of the total pay bill and paid via PAYE.
  • Payroll data is personal data under UK GDPR & Data Protection Act 2018.
  • Must be stored, processed, and shared securely and lawfully.
  • Data breaches can result in ICO fines and reputational damage.

Why choose us?
We manage every aspect of your payroll cycle with precision and compliance in mind — from onboarding new staff to reporting to HMRC, pensions, and year-end duties. With us, your payroll is in expert hands.