Payroll services

Let the Business Bookkeeper manage your payroll, auto enrolment, and workplace pension responsibilities.

Fully managed payroll services

Ensuring that each member of your staff is paid on time and the correct amount is important for maintaining staff morale and their trust in you as their employer.

However, for most sole traders, partnerships, and limited companies, paying their staff has become increasingly complex in the last decade. Yearly payroll updates to HMRC have been replaced by monthly updates, your payroll system has to been Real Time Information (RTI) compliant, and employers are now expected to set up and manage a workplace pension scheme.

If members of your staff work irregular hours and shifts or they earn commission or bonuses based upon their sales and performance levels, working out what you need to pay them after deducting income tax and National Insurance is complicated and time-consuming as is the comprehensive set of records you have to keep updated.

At The Business Bookkeeper, we provide our clients with a comprehensive payroll and workplace pension set-up and management process. We make sure that, following set-up, your records are kept up to date and you’ll know exactly what you need to pay your staff and HMRC and when you need to pay it.

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A bespoke service for your business

If you want help getting your books, payroll, and workplace pensions up to date now, we can do that. And our team of experienced professionals will be there each month to make sure that you have the time you need to build a resilient business for the future.

Part of an overall bookkeeping package

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We offer our payroll and workplace pension service as part of our Comprehensive and Premium bookkeeping packages.

Accurate bookkeeping is important for all businesses whether they’re sole traders, partnerships, or limited companies. Knowing how well your business is performing, the level of profit you’re making, and finding opportunities to cut costs relies on having the latest and most accurate financial records to hand as well as working with an expert to help you interpret what the figures mean.

For over a decade, the Business Bookkeeper has become, for our clients, the outsourced, virtual accounts department of their businesses. As well as making sure your bookkeeping is compliant, reliable, and contemporary, we manage payrolls and workplace pensions, conduct bank reconciliations, look after your cash flow, manage your accounts receivables and payables, provide monthly management accounts and reporting, and liaise with your accountant on the preparation of tax returns.

We match our service to suit you and what your business needs and, if you have staff, payroll is a core financial and administrative function of your business which requires constant attention and diligence.

Frequently Asked Questions


Your payroll is a list of the employees you have and how much you pay them. In accounting and bookkeeping terms, payroll is the system by which:

  • your staff members are paid,

  • the level of income tax, National Insurance, workplace pension contributions, and other deductions you take from their salary,

  • the payments of income tax, National Insurance, workplace pension contributions you make to HMRC and the pension provider you have chosen on behalf of your employees,

  • the payments of National Insurance Employers’ Contributions and employer workplace pension contributions you have to make, and

  • the administration of payroll and workplace pension system.

In 2013, Real Time Information (RTI) payroll was introduced by HMRC. Previously you completed forms at the end of the year detailing the transactions on your payroll – with RTI, you are required to make electronic submissions every month.

The Business Bookkeeper’s payroll system is fully RTI-compliant.

To set up payroll, you (or your registered tax agent on your behalf) must first register as a business as an employer to get an online HMRC PAYE login. You or your agent then choose software to record the details of your employees, to calculate how much you pay them and the size of their deductions, and to submit these records to HMRC.

Most small employers now outsource the setting up of their payroll to their accountant or their bookkeeper.

When running payroll, you record each member’s pay, calculate their deductions, and produce payslips for each employee. You then must make a Full Payment Submission (FPS) reporting pay and deductions to HMRC.

In the following tax month, you can then claim any reduction on what you owe HMRC by sending an Employer Payment Summary (EPS) by the 19th and pay HMRC what is due by the 22nd. For companies making payments of less than £1,500, you may be able to defer to quarterly payments.

If you are late with a submission after you’ve made payment to your members of staff, you will be subject to a late filing notice which may include a financial penalty. If you make a mistake on your payroll, this may affect the income-related benefits to which your staff are entitled like Universal Credit.

You must keep payroll records in the UK for 3 years after the end of the tax year to which the records belong for potential HMRC inspection.

Payroll tax is another term for National Insurance Employers’ Contributions and for the contributions you make to your employees’ pensions.

Auto enrolment, in an accounting and bookkeeping context, is a workplace pension scheme into which all employees are automatically enrolled unless they opt out. At present, all employees can opt out of paying into a workplace pension but employers can not opt out of providing the service.

Auto enrolment began in stages in October 2012 before becoming compulsory for all employees in February 2018.

An auto enrolment pension is a pension provided by an employer under their statutory obligations to do so.

If your employees meet the following three criteria, they are eligible for auto enrolment and you must offer them a place on your workplace pension scheme:

  • aged between 22 and their State Pension age,

  • they ordinarily work in the UK, and

  • they earn at least £10,000 per annum.

When beginning to employ other people, you must apply to a pension provider as soon as possible as it may take time to complete the application process.

There is a list of small employer pension providers on the Pension Regulator’s website or you can get help from a qualified advisor.

Our Payroll service includes:

  • provision of a secure online document exchange facility,

  • collate your payroll data,

  • provision of our New Starter checklist,

  • processing of your payroll,

  • processing of starters and leavers,

  • record and calculate Student Loan and Salary Sacrifice deductions,

  • compliance with the latest payroll legislation,
    provision of detailed electronic payslips,

  • calculation of payments due to HM Revenue and Customs and other bodies,

  • NIC eligibility analysis,
    submit RTI returns to HM Revenue and Customs,

  • completion and submission the final end of year RTI declaration,

  • provision of year-end P60s for each employee, and

  • provision of payroll summary reports.

We also offer the completion of P11D and P11D(b) forms and the calculation of Class 1A contributions as a chargeable extra.

Our auto-enrolment service includes:

  • assessment of your the workforce every pay period and monitor changes,

  • processing of staff opt-outs and opt-ins,

  • on-going employee and statutory communications,

  • reporting to The Pensions Regulator and answering queries,

  • assessment of new starters and dealing with leavers,

  • calculation of contributions for each pay period,

  • sending enrolment and contributions to pension provider,

  • maintenance of your records, and

  • re-enrolment of eligible workers.

We will also set up your automatic enrolment service for you as a chargeable extra.