Managed payroll services UK

What does a managed payroll service actually cover?

A pay run starts with people and pay instructions, not with pressing a button. We receive your salaries, hours, overtime, approved expenses and changes, check the information and calculate gross-to-net pay. That includes the relevant PAYE deductions, National Insurance and pension contributions. You receive reports to review before the payroll is finalised.

The service also covers starters and leavers, statutory pay where applicable, digital payslips, P45s, P60s and year-end payroll reporting. Workplace pension assessments and contribution submissions sit alongside the pay run. If a letter or instruction from HMRC changes an employee’s tax code, the payroll record needs to reflect it; sending us correspondence promptly prevents avoidable catch-up work.

What do you need to send each pay period?

Send one approved set of changes rather than several conflicting spreadsheets. Include employee identifiers, the period covered, payable hours and rates, overtime, bonus amounts, absences and any deductions you have authorised. For salaried staff, confirm changes even when most people receive their usual pay. A clear “no changes” instruction is better than silence.

Starters need the appropriate starter information or P45, while leavers need a confirmed leaving date and final-pay instructions. Do not send a bank-account change through an unverified message. Agree who can instruct payroll and who can approve it, including a deputy when the usual contact is away. That division is particularly useful in small businesses where one person normally manages everything.

What changes when you outsource payroll?

You no longer need to operate the payroll software yourself, but you still control pay decisions. We agree the timetable, prepare the calculations and show you the result. Your job is to check that the right people, hours and changes are present, approve the run and arrange payment. Outsourcing is a working relationship, not a transfer of the employer’s legal duties.

For director-only payrolls, the routine can be smaller but the information still matters. Confirm the intended pay pattern and obtain advice on remuneration decisions where needed; payroll processing is not personal tax planning. We use HMRC-recognised software without asking you to buy or learn a separate system. Employer prices are published by employee band, with the final scope confirmed in your quote.

How does it work?

1. 1

   Agree the schedule

   We confirm the PAYE scheme, employee list, pay frequencies, pension provider and responsible contacts. Cut-offs are set around your actual payday, including the time you need for approval and arranging bank payments.

2. 2

   Send and check pay inputs

   Your authorised contact supplies the period’s changes through the agreed secure process. We raise missing information and reconcile instructions rather than guessing a rate, a leaving date or an absence decision.

3. 3

   Review the prepared payroll

   We calculate pay and produce reports so you can check employee totals, changes, deductions and the employer cost. Queries are resolved before you authorise the final run and its agreed submissions.

4. 4

   Finalise and retain records

   We issue digital payslips, complete the agreed HMRC reporting and pension submissions, and provide the payroll outputs. You arrange payments and retain the employer records needed for your business and any later checks.

Common mistakes and compliance traps

Do not confuse net pay with the employer’s full cost: employer National Insurance and pension contributions are separate from the amount paid to staff. A payroll service fee is separate again.

An FPS is normally due on or before payday. Late changes need an appropriate correction, not a duplicate live submission. Employers must also retain payroll records; access to a portal is not a reason to ignore record-keeping duties.

• GOV.UK: choosing how to run payroll
• GOV.UK: reporting payroll to HMRC
• GOV.UK: keeping payroll records