What are the admin procedures for running a UK business payroll?

For businesses entering the UK market, here is a summary of the admin procedures to run a UK payroll.

In overview, the admin procedures for running a UK business payroll are as follows: UK payroll is usually run on a monthly basis for employees. Staff are usually paid on the last working day of the month, or on the last working day prior to a fixed day chosen by their employer, for example, the 25th of every month. All tax filings are done monthly online. All income tax and employees national insurance deductions, together with the employer’s national insurance payments, are paid together by the 22nd day of the following month, if paid online.

UK businesses are required to offer a compliant pension scheme to all employees. These are currently at a minimum of 3% employer contributions (5% employee contributions) on earnings between £6,240 and £50,268 per annum. Pension deductions are calculated by the UK business payroll administrator and a monthly upload to your chosen pension provider triggers a direct debit payment to the pension scheme.

There are no year end payroll returns here in the UK. All reporting is monthly, with the exception of a yearly return of staff benefits via P11D forms. These must be filed by 6th July following the end of the Income tax year on the previous 5th April. Associated tax payments should be paid online by the 22nd July of each year.

In addition to the above, adequate employer’s liability insurance will be required when hiring any UK staff. Currently, the minimum required cover is £5m of liability.

Read more about how we support International industry at every stage of Entering the UK Market business journey. As always, please feel free to get in touch with me to find out more on the admin procedures for running a UK business payroll or to discuss your own business situation.

Gerry Collins

Managing Partner

Further Reading

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