Why Outsourcing Payroll is a Game Changer for Small Business.

Handling payroll in-house can be overwhelming, especially for small business owners who already have a lot on their plate. Ensuring employees are paid accurately and on time, keeping up with ever-changing payroll legislation, and managing auto enrolment responsibilities can take hours each month.

At BarrettStacey Accounting, we understand how crucial payroll is, which is why we partner with payroll specialists who handle it daily. Our experts use BrightPay, a user-friendly and efficient payroll platform that ensures compliance, accuracy, and ease of use.

We chose to work with The Payroll Team for many reasons. They have a fantastic reputation within the Accountancy and Bookkeeping Space. Onboarding our clients was straightforward, and their response rates are fantastic. We know that this partnership brings so much value to our clients, knowing that we are working with specialists in the payroll.

We’ve seen first-hand how outsourcing payroll can save business owners time, prevent costly errors, and reduce stress. Below, we’ll share some real-life examples of how outsourcing payroll and auto-enrolment has made a huge difference for our clients.

Save Time and Focus on Growing Your Business

The Hidden Time Drain of Payroll Management

Payroll is more than just entering employee hours and hitting “send.” It involves:

Calculating wages, deductions, and pension contributions
Staying compliant with HMRC regulations and auto-enrolment obligations
Managing payroll tax filings and year-end reports
Handling employee queries about payslips, tax codes, and pension contributions

For business owners and office managers, payroll can become a time-consuming process.

I remember when I worked as an Office Manager—I had to shut myself in a private office just to focus on payroll, ensuring confidentiality and accuracy. The stress of managing everything correctly while staying compliant was huge. If I had known about outsourcing payroll, I would have suggested it to our Director immediately!

By outsourcing, you free up time to focus on growing your business rather than getting lost in spreadsheets or timesheets.

Ensuring PAYE Setup is Done Correctly from the Start

When new limited companies sign up with us, one of the first things we do is outsource the PAYE setup to our payroll partners. Why?

✅ Accuracy from Day One – Our payroll experts ensure the correct PAYE scheme is registered with HMRC, avoiding setup delays or errors.
✅ Compliance Guaranteed – The payroll team knows exactly what HMRC requires, ensuring all documentation is submitted correctly.
✅ No Stress for Business Owners – Instead of worrying about the complexities of PAYE registration, clients can focus on their business.

Real Scenario:
We recently worked with a new limited company that needed to set up PAYE for their first employee. Instead of struggling with the HMRC registration process, we outsourced the setup to our payroll specialists. Within days, the PAYE scheme was in place, the business was fully compliant, and payroll could run smoothly from day one. No delays, no errors, no stress.

Preventing Costly Payroll Errors

Payroll Mistakes Can Be Expensive

Payroll errors are more common than you think. Whether it’s a simple miscalculation or an issue with payroll software, mistakes can lead to:

Employees being underpaid or overpaid
Issues with HMRC tax submissions
Frustrated staff who lose trust in the business

Real Scenario: How Payroll Outsourcing Resolved a Costly Mistake
One of our clients had been running their own payroll using software that, unknown to them, double-ran the payroll one month. As a result:

Employees were taxed twice on their wages.
HMRC overcharged the company and staff members.
The business owner was left trying to fix the mess with no clear solution.

Once they approached us, we immediately outsourced the issue to the payroll team, who:
✅ Identified the problem and corrected the duplicate payroll submissions.
✅ Provided clear advice on reclaiming the overpaid tax for affected employees.
✅ Took over the entire payroll process, ensuring it would never happen again.

For this business owner, payroll went from a stressful, recurring problem to a completely outsourced, hassle-free solution.

One less task on the ‘forever to-do list.’

Compliance: Stay Up to Date with the Latest Payroll Regulations

Payroll Legislation is Constantly Changing

One of the biggest challenges for businesses is staying up to date with payroll laws and tax regulations. In the UK, payroll legislation is constantly evolving, including:

National Minimum Wage and Living Wage changes
Employment Allowance updates
Auto enrolment pension requirements
Real Time Information (RTI) submissions to HMRC
Statutory Sick Pay (SSP) and Statutory Maternity Pay (SMP) rules

Why Risk Penalties?
Failure to comply with these can lead to penalties, fines, and even HMRC investigations.

How Payroll Specialists Keep You Compliant

Our payroll specialists are experts in the field, meaning they:
✅ Keep up with new payroll legislation so you don’t have to.
✅ Ensure all RTI submissions are filed correctly and on time.
✅ Manage pension contributions and auto-enrolment compliance.
✅ Process statutory payments (SSP, SMP, etc.) accurately.

By outsourcing to payroll professionals, you can avoid costly errors and stay legally compliant without the stress.

More than Just Payroll: Additional Services Available

Our payroll specialists offer more than just payroll processing—they also provide:

CIS Submissions

If you work in the construction industry, you’ll be familiar with the Construction Industry Scheme (CIS). Under CIS, contractors must deduct tax from subcontractors’ payments and submit this to HMRC.

Why outsource CIS submissions?
✅ Ensures the correct deductions are made from subcontractors.
✅ Avoids late filing penalties from HMRC.
✅ Saves time on complex CIS return calculations.

P11D Preparation

If your business provides employees with company cars, private healthcare, or other benefits, you need to submit P11D forms to HMRC. This process can be complex and time-consuming.

By outsourcing P11D preparation, you ensure:
✅ Accurate benefit-in-kind calculations.
✅ Timely submissions to avoid HMRC penalties.
✅ Compliance with tax reporting requirements.

These additional services make outsourcing payroll even more valuable, as you have a one-stop solution for payroll, pensions, CIS, and employee benefits reporting.

Here are 5 scenarios from different industries that highlight why outsourcing payroll is a gamechanger:

Construction Firm (CIS Compliance)

A small construction company struggled with CIS submissions, missing deadlines and facing penalties. After outsourcing to our payroll specialists, CIS tax deductions and submissions were done on time and accurately, preventing costly HMRC fines.

Retail Store (Seasonal Employees & PAYE Setup)

A high-street shop hired seasonal staff for Christmas and needed temporary PAYE registrations. The payroll can handle this seamlessly, ensuring staff are paid correctly and will remove payroll after the season issuing their staff P45s.

Restaurant (Variable Pay & Overtime Management)

A restaurant owner has a complicated payroll due to hourly wages, overtime, and tips. Their old software causes errors in overtime calculations, leading to underpayments. By getting BarrettStacey involved this painful burden has been removed.

Digital Marketing Agency (Director PAYE & Pension Setup)

A small agency needed PAYE setup for their director’s salary while ensuring minimum auto-enrolment contributions were met. We set everything up, ensuring full compliance while the director could focus on scaling the business.

IT Consultancy (P11D Submissions for Employee Benefits)

An IT company offered private healthcare and company cars but was struggling with P11D preparation. We ensured correct filings, avoiding potential tax issues for employees.

FAQs: Outsourcing Payroll and Auto Enrolment

Here are some frequently asked questions about outsourcing payroll and auto-enrolment, along with clear and informative answers.

What is payroll outsourcing?

Payroll outsourcing is when a business hires a specialist payroll provider to handle its payroll processes, such as calculating wages, deducting tax and National Insurance, submitting payroll reports to HMRC, managing auto-enrolment pensions, and issuing payslips to employees.

What are the main benefits of outsourcing payroll?

✅ Saves time – No more admin headaches, payroll runs smoothly with very little of your input.
✅ Ensures compliance – Stay up to date with payroll legislation, avoiding fines.
✅ Reduces payroll errors – Prevents overpayments, underpayments, and incorrect tax deductions.
✅ Enhances data security – Protects sensitive employee and business information.
✅ Simplifies auto enrolment – Ensures pension contributions and compliance are handled correctly.
✅ Scalability – Payroll adapts as your business grows.

How does outsourcing payroll improve compliance with HMRC?

Our payroll specialists stay up to date with the latest tax laws, minimum wage changes, and auto-enrolment regulations, ensuring your business remains compliant.

They handle:
✔ Real-Time Information (RTI) submissions to HMRC
✔ PAYE calculations and tax deductions
✔ Statutory Sick Pay (SSP) and Maternity Pay (SMP)
✔ National Insurance contributions
✔ End-of-year reporting

How does outsourced payroll handle auto-enrolment pensions?

Payroll outsourcing ensures that your workplace pension scheme is:

✔ Set up correctly with auto enrolment rules applied
✔ Assesses employees every payroll period to see if they qualify for enrolment
✔ Automatically deducts pension contributions from wages
✔ Submits contributions to the pension provider on time
✔ Handles opt-ins and opt-outs as required

This means you never have to worry about pension compliance again!

How does CIS payroll outsourcing help construction businesses?

If you work in the Construction Industry Scheme (CIS), payroll outsourcing ensures that:

✔ CIS tax deductions are accurately calculated for subcontractors
✔ Monthly CIS returns are submitted on time to HMRC
✔ Subcontractors receive correct CIS payment statements
✔ The business remains compliant with HMRC’s CIS rules

This helps avoid costly penalties and admin burdens for contractors.

Can outsourced payroll handle different types of employment contracts?

Yes! Whether you employ:

Full-time staff
Part-time employees
Zero-hours workers

The payroll team will ensure each is processed correctly under PAYE or CIS, applying the right tax codes and deductions.

What happens if an employee has a payroll query?

Instead of business owners handling payslips or tax code questions, the outsourced payroll team takes care of it. Employees receive:

✔ Payslips via email and employee portal access
✔ Support with tax queries
✔ Help with pension contributions or deductions

This means fewer distractions for business owners!

Can payroll outsourcing help with P11D preparation?

Yes! If you provide employee benefits such as:

✔ Company cars
✔ Private healthcare
✔ Bonuses or other taxable perks

Outsourcing ensures that P11D forms are accurately prepared and submitted to HMRC on time, preventing tax miscalculations.

What payroll software do your payroll specialists use?

We work with payroll specialists who use BrightPay, an easy-to-use, HMRC-recognised payroll software. BrightPay ensures:

✔ Accurate and automated payroll calculations
✔ HMRC and pension submissions are handled seamlessly
✔ Secure payslip distribution to employees

This means your payroll is managed using one of the best payroll platforms available.

How does payroll outsourcing improve security?

Payroll contains sensitive financial and employee data, making security a top priority. By outsourcing, you benefit from:

✔ Secure cloud-based payroll software
✔ Data encryption to prevent breaches
✔ Regular software updates for compliance
✔ Strict access controls, reducing risk of payroll fraud

This keeps your payroll information safe and fully GDPR-compliant.

How much does it cost to outsource payroll?

The cost depends on the number of employees and services needed, but outsourcing is often cheaper than hiring an in-house payroll administrator. Plus, you save money by avoiding penalties and errors.

We can assist whether you have 1 payroll as a director-only limited company if you have 1-10 employees or you have 1,000. We don’t have an employee limit.

It doesn’t matter if you have fixed salaries (same salary every month) or variable (different salaries every month) We can also offer weekly or bi-weekly payroll. We are very flexible and we can provide a tailored quote based on your business needs—just contact us or call us on 0117 290 1204 for details.

What happens if my business grows—will outsourced payroll scale with it?

Absolutely! Whether you’re hiring one extra employee or expanding to a larger team, payroll outsourcing scales with your business. The payroll team can:
✔ Onboard new employees seamlessly
✔ Adjust payroll as needed for promotions, bonuses, or leavers
✔ Ensure pension contributions are adjusted accordingly

This makes outsourcing a long-term, hassle-free payroll solution.

Can I switch to payroll outsourcing mid-year?

Yes! You don’t have to wait until the tax year ends. Our payroll specialists can seamlessly transition your payroll records, ensuring no disruption for your employees.

✔ We request payroll records from your current provider
✔ We ensure continuity in payments and tax filings
✔ Your employees experience no gaps in their payroll process

Will I still have control over payroll if I outsource?

Yes! Outsourcing doesn’t mean losing control—you still:

✔ Approve payroll before processing
✔ Receive payroll reports for review
✔ Access payroll data whenever needed

Instead, you gain expert support while removing the admin burden.

How do I get started with payroll outsourcing?

Getting started is easy! Simply:

📞 Call us on 0117 290 1204 for a quick chat
📩 Email us at ask@barrettstacey.co.uk and we’ll arrange a free 15-minute discovery call.

We’ll handle the setup so you can stop worrying about payroll and focus on growing your business!

Final Thoughts: Is Payroll Outsourcing Right for You?

If payroll has ever felt like a burden, or you’re worried about compliance, data security, or errors, outsourcing might be the best solution.

At BarrettStacey Accounting, we work with specialist payroll providers who handle payroll every single day, ensuring compliance, accuracy, and efficiency.

✨ Ready to simplify payroll, auto-enrolment, CIS, or P11D reporting? Get in touch today to discuss how we can help you save time, reduce stress, and ensure compliance.

📞 Call us on 0117 290 1204 or email us at ask@barrettstacey.co..uk

If you would like a super speedy onboarding process, don’t forget you can visit our shop and enter the number of employees you have on your payroll.