Payroll Services For Small Business In UK
Smart payroll solutions for UK Small Businesses
We handle the full payroll job for UK employers with 1 to 49 staff. That covers payslips, PAYE, National Insurance, RTI filing, pension auto-enrolment, and year-end forms. If you are taking on your first employee, or moving payroll away from an in-house setup, we do the work and you approve it.
Your team gets paid the right amount, on time, every pay run, and HMRC receives the correct figures without you opening a single spreadsheet. That is what our payroll services for small business are built to do. Prices start at £4.50 per payslip per month, with fixed monthly plans for smaller teams, and there is no setup charge to get started.
How much does a payroll service cost?
Most small businesses pay a fixed monthly fee or a set price per payslip. Our prices start at £4.50 per payslip per month, or from £27 a month for teams up to five people. You get one clear figure and no surprise charges on top.
Team size | Typical plan | From |
1 to 5 staff | Fixed monthly fee | £27 per month |
6 to 49 staff | Per payslip, monthly run | £4.50 per payslip |
How much do payroll services cost for a small business?
Across the UK market, small business payroll usually costs £3 to £8 per payslip, or £4 to £12 per employee per month, with setup fees of £30 to £150. Weekly pay runs cost more than monthly ones because there is more filing to do.
We sit at the lower end of that range. Our starting price is £4.50 per payslip on a monthly run, we do not charge a setup fee, and the quote you get is the price you pay. For a full breakdown of the market, see our guide on payroll outsourcing cost.
What’s included in your fixed monthly price
Everything a standard pay run needs is in the price. There are no hidden extras for basic tasks. Your fixed price covers:
- Payslips for every employee, sent by secure email or portal
- PAYE, National Insurance, and tax code calculations
- RTI submissions to HMRC on each pay run
- Pension auto-enrolment admin and contribution filing
- Statutory pay (sick, maternity, paternity) worked out for you
- Starters, leavers, and year-end forms (P60 and P45)
Off-cycle runs, P11D benefits filing, and CIS returns are quoted separately, so you only pay for what you use.
Our payroll Services For Small business In UK
We run the whole payroll cycle for you. Below is what each part covers.
Here’s what we offer:
Full payroll processing and payslips
We work out gross to net pay for every employee and produce payslips each pay run. That includes basic pay, overtime, bonuses, deductions, and any adjustments you send us. Payslips go out by secure email or an online portal your staff can log into. You get a summary to check before anyone is paid.
PAYE, National Insurance and tax code management
We calculate PAYE tax and National Insurance for each employee and apply the correct tax code. When HMRC sends a code change, we action it on the next run. If someone starts on an emergency code, we sort the correction so they are not over-taxed for long.
Real Time Information (RTI) submissions to HMRC
Every UK employer must report pay and deductions to HMRC on or before each payday. We file the Full Payment Submission (FPS) and any Employer Payment Summary (EPS) for you, on time, every run. Late or missing RTI reports are a common cause of penalties, and we keep yours filed correctly.
Pension auto-enrolment and re-enrolment
By law you must put eligible staff into a workplace pension and pay into it. We assess each employee, enrol those who qualify, and file contributions with your pension provider. We also handle the three-yearly re-enrolment and the declaration of compliance, so you stay on the right side of The Pensions Regulator.
Statutory pay and holiday pay
We calculate statutory sick pay, maternity, paternity, adoption, and shared parental pay to the current HMRC rates. We also work out holiday pay for hourly and irregular-hours staff, which is easy to get wrong. You tell us the dates and hours, we do the sums.
New starters, leavers and year-end reporting (P60, P45, P11D)
When someone joins, we set them up and apply the details from their P45 or starter checklist. When someone leaves, we produce their P45. At year end we issue P60s to all staff and file the final submission with HMRC. If you provide taxable benefits, we prepare P11D forms as an add-on.
Cloud Payroll Support
Integration with Xero Payroll, QuickBooks, and Sage for real-time, secure access to employee pay data and compliance reports.
Who We Help
We work with small UK employers across many sectors and regions, including businesses that want a payroll service for small business in London. Here is where we fit.
First-time employers taking on their first member of staff
Hiring your first employee brings new legal duties, and we set all of it up for you. We register you as an employer with HMRC, get your PAYE scheme running, sort the pension, and run that first payslip. You do not need to learn payroll rules to hire well.
Small businesses and growing teams (1 to 49 employees)
Whether you have three staff or thirty, the service scales with you. Adding a starter or removing a leaver takes one message to us. As your headcount grows, your per-payslip cost often drops, so growth does not punish your budget.
Limited company directors and single-employee payroll
Many directors pay themselves a salary through PAYE to use their tax allowance well. We run director-only payroll, file the RTI, and keep the salary at a tax-efficient level you agree with your accountant. It is a small monthly job that is easy to forget, so we keep it on track.
Construction payroll services (CIS subcontractors)
For construction firms, we handle payroll alongside the Construction Industry Scheme. We verify subcontractors with HMRC, apply the right deduction rate, produce deduction statements, and file the monthly CIS return. Labour and materials are split correctly so deductions are accurate.
Payroll services for recruitment agencies
Agencies deal with high volumes, frequent starters and leavers, and weekly pay. We process weekly and fortnightly runs, handle temp and contractor pay, and keep RTI filed on every cycle. Fast turnaround on new placements means your workers get paid without delay.
Hospitality payroll services
Hospitality pay changes week to week with shifts, tips, and variable hours. We handle weekly payroll, work out holiday pay for irregular hours, and apply the National Minimum and Living Wage rates for each age band. Tronc and tip arrangements can be built in.
Education payroll services
Schools, nurseries, and training providers often have term-time-only staff and mixed pay patterns. We calculate term-time pay, handle Teachers’ Pension or other scheme contributions where relevant, and manage the reporting. Support staff and teaching staff can sit on the same run.
Payroll services for charities
Charities need accurate payroll on a tight budget, and we keep costs low without cutting corners. We run PAYE for paid staff, handle pension auto-enrolment, and deal with any statutory pay. Fixed monthly pricing helps trustees plan spending with confidence.
Payroll services for freelancers
If you have gone from sole trader to running a limited company, you may now need PAYE for your own salary. We set up the scheme and run a simple director payroll each month or year. If you later take on staff, we add them to the same setup.
How our payroll service works for small business In UK
Getting started takes a short setup, then it runs on a monthly rhythm. Here is the process.
Onboarding and PAYE setup with HMRC
We start by setting up or transferring your PAYE scheme. If you are new to employing, we register you as an employer and get your reference numbers from HMRC. We collect your staff details, pay rates, and pension information, then confirm your first pay date. Most setups are ready within a few working days.
Your monthly payroll cycle
Each month we prepare your payroll from the figures you send, then send you a summary to approve. Once you sign off, we produce payslips, file the RTI with HMRC, and submit pension contributions. You get a clear report showing what to pay staff and what to pay HMRC, and by when.
What we need from you each pay run
Very little. You send any changes since the last run: new starters, leavers, hours worked, overtime, bonuses, or absences. If nothing has changed, a quick confirmation is enough. We chase you before the deadline so a run is never missed.
Book Call For Small Business Payroll Service
Why outsource your payroll For Small Business
Outsourcing payroll means a provider runs your pay for you instead of you doing it in-house. You keep control of decisions like pay rates and hires. The provider does the calculations, files the reports, and keeps up with rule changes. You approve each run and pay one monthly fee.
Save time and cut the admin
Payroll eats hours that a small business owner rarely has. We take the monthly calculations, filings, and payslips off your plate, so your time goes back into running the business. A pay run that might take you half a day becomes a five-minute approval.
Stay compliant and avoid HMRC penalties
Payroll rules change often, and mistakes carry fines. We file RTI on time, apply current rates, and keep pension duties met, which keeps you clear of penalties. If HMRC ever queries a submission, we deal with it on your behalf.
Keep employee data secure
Payroll holds sensitive data like bank details, salaries, and National Insurance numbers. We store and send this data using secure systems that meet UK data protection rules. Payslips go through encrypted email or a password-protected portal, not open attachments.
Scale as you grow
As you hire, payroll gets more complex, and an outsourced service absorbs that without extra effort from you. New starters, more pension members, and higher volumes are handled on the same setup. You are not stuck rebuilding a process every time the team changes.
What happens if payroll goes wrong
Payroll mistakes cost money and upset staff, so we build in checks to catch them early. Here is the risk and how we handle it.
Common payroll mistakes and their penalties
The usual errors are late RTI filing, wrong tax codes, missed pension contributions, and incorrect statutory pay. Late or wrong RTI can bring monthly penalties from HMRC. Missed pension duties can bring fines from The Pensions Regulator. Underpaying staff can lead to National Minimum Wage penalties and back-pay claims.
How we protect your business
We work to a checklist on every run and reconcile figures before anything is filed. You approve a summary before payslips go out, so errors are caught before payday. If a correction is ever needed, we file it quickly and deal with HMRC directly.
How to choose the right payroll provider for your small business In UK
Look for a payroll provider that:
- Is clear on price, with no vague extras
- Files your RTI to HMRC for you
- Handles pension auto-enrolment
- Answers when you call, with a real person rather than a ticket queue
- Uses HMRC-recognised software
- Supports your sector, whether that is construction, hospitality, or director-only pay
Ask three things before you sign:
- What the monthly price covers
- Whether starters, leavers, and corrections are included
- How they keep your data safe
FAQ’s
Commonly Asked Questions
Do I need a payroll service for my small business?
If you pay anyone through PAYE, you have legal duties to report to HMRC and, in most cases, provide a pension. A payroll service is not required by law, but it keeps those duties met without you learning the rules. For most owners, it costs less than the time and risk of doing it yourself.
What is outsourcing payroll services?
It means paying a provider to run your payroll instead of handling it in-house. They do the calculations, produce payslips, file RTI, and manage pensions, while you approve each run. You get the result without doing the work.
Which payroll system is best for small businesses?
The best system is one that files RTI to HMRC, handles auto-enrolment, and fits your pay frequency. Rather than pick software and manage it yourself, many small businesses hand the whole job to a provider who already runs proven, HMRC-recognised systems. That way the tool and the work are both covered.
Can you set up PAYE for a new business?
Yes. We register you as an employer with HMRC, get your PAYE and Accounts Office references, and set up your scheme ready for the first pay run. If you are hiring your first person, we guide you through what is needed.
Can you run payroll for fewer than five employees?
Yes. Small teams and even single-director payroll are welcome. Our fixed monthly plan for up to five staff starts at £27 a month, so a very small payroll is still affordable.
How do I switch payroll provider mid-year?
Send us your year-to-date figures and employee records, and we take it from there. We carry over each person’s pay and tax history, check it against your last submission, and continue from your next run. There is no need to wait for the new tax year.
Do I still need an accountant if I outsource payroll?
Usually yes, for different work. Payroll covers paying your staff and reporting to HMRC. An accountant handles your accounts, tax returns, and wider advice. The two work together, and we are happy to share figures with your accountant.