Running a business is full of strategic decisions, but payroll shouldn’t be a gamble. Your team is your most valuable asset, and keeping them paid accurately and on time is essential for maintaining morale and trust. Yet as your business grows, so does the complexity of payroll. New legislation, evolving compliance rules, and increasing demands can put pressure on you to get everything right.
Relying on overstretched internal systems can leave you exposed to costly mistakes and compliance headaches. That’s where outsourcing comes into play.
By bringing in dedicated payroll experts, you’re not just offloading admin, you’re gaining accuracy, efficiency, and peace of mind.
Allan Jones, regional payroll manager at Haines Watts Chester, shares why more businesses are taking this route, what benefits it brings, and how the right provider can transform payroll from a basic function into a real business asset.
The changing face of payroll
Today, payroll is much more than just counting out your teams’ hours and sending out a payslip.
Over the past decade, the function has grown far more complex, with new rules such as auto-enrolment, pension compliance, and changes to tax and benefit regulations.
From the 2025/26 tax year, HMRC will require all benefits in kind to be processed through payroll rather than using the old P11D form. Add in the annual tweaks to the National Minimum Wage and various allowances, and the range of tasks your payroll system has to handle has grown significantly.
Plus, with ongoing IR35 issues causing more contractors to move on and off payroll, keeping everything up to date requires careful attention to avoid fines. HRreview found that more than half of companies have experienced payroll errors over the past five years, leading to issues ranging from annoyed employees to compliance fines.
Even if you currently handle payroll in-house, relying on someone who’s not a specialist, which could be a general finance person covering accounts, bookkeeping, and payroll, can easily lead to mistakes.
When to outsource payroll
There’s no one rule for when it’s time to move to an outsourced payroll solution – in fact, it’s more helpful to make the move before you’re forced to, say by a system breakdown or compliance issue. Investing in your payroll is investing in the future of your business.
This includes when you’re getting started. We’ve seen start-ups often prefer a full-service payroll solution from the outset, ensuring they can get expert help right away without having to hire and train an in-house team.
More commonly, as your business grows, payroll becomes more complex and time-consuming. What used to be a simple task can quickly turn into a time-sink and cause delays if it’s not managed properly. Outsourcing takes that burden off your shoulders and ensures everything is done correctly and on time, even as your team expands.
The benefits of professionalised payroll
Outsourcing your payroll gives your business access to domain experts in the world of employee legislation, tax and payroll processing to ensure that you’re getting the maximum value out of your payroll process, which brings a range of benefits.
1. Cost efficiency
Outsourced payroll services usually come at a fixed fee that’s more affordable than maintaining your a dedicated payroll department. When you add up the cost of hiring dedicated staff, training, software, IT support, outsourcing can save you a lot of money.
2. Resource optimisation
Managing payroll in-house can tie up a lot of your team’s time. By outsourcing, your staff can focus on other important tasks that drive your business forward.
3. Inadequate reconciliation of final payroll submissions
It’s essential that your final Full Payment Submission (FPS) or Employer Payment Summary (EPS) is accurate. If this final report isn’t correctly flagged as the ‘final submission,’ HMRC might not update their records properly, leading to issues with the subsequent P60 generation.
4. Reliability
Professional payroll providers make sure everything is processed accurately and on time. You won’t have to worry about staff absences, sickness, or delays with the knowledge that experts are handling all your RTI submissions and other payroll filings.
5. Enhanced security
Payroll data is sensitive. When you outsource, your information is stored on secure platforms with advanced security measures, while still being accessible when you need it.
6. Auto-enrolment management
Navigating auto-enrolment pension rules is another tricky area. A specialist provider can stay on top of these changes, ensuring you comply with all the latest requirements.
Check out our blog post to help you avoid the most common P60 mistakes
Stack the odds in your favour
At Haines Watts, we tailor our payroll outsourcing services to fit your unique needs. Whether you’re a new start-up or an established business that’s outgrown your in-house payroll team, we offer a comprehensive service that includes:
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Transparent, fixed-fee pricing with no hidden costs.
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Complete management of RTI PAYE filings.
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Easy-to-understand, tailored reports and direct email delivery of payslips.
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End-of-year tax return preparation and filing.
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Detailed payroll cost analysis to help you understand your spending.
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Expert advice on all payroll issues, including auto-enrolment and navigating complex tax changes.
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Secure reporting and communication through our dedicated portal.
We’ve worked with hundreds of businesses at every stage of their growth journey to build processes that adapt to your plans and drive your success. Our team can take care of your payroll, so you can focus on what really matters: realising your business’s full potential.
If you’d like to learn more about how we can help simplify your payroll process, get in touch with our payroll experts today.
