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Outsourced UK
company payroll

Administering a UK payroll and dealing with other human resource (HR) matters can be time consuming. This is made more difficult by complex UK tax and employment legislation. We can provide comprehensive and confidential payroll services as well as advice on HR matters. By doing this, we can help you focus on the core activities of your business.

UK payroll service

Our payroll service includes:

  • Customised pay slips
  • Payments made electronically to employee bank accounts
  • Monthly or bi-monthly payments
  • Administration of PAYE, National Insurance, statutory sick pay, statutory maternity pay, etc
  • Completion of statutory forms, including year-end returns, to issue to your employees and submit to HMRC
  • Summaries and analyses of staff costs
  • Administration and payment of other employee benefits

We can also help with P11D registration and submission.

Getting P11D dispensation

Employers must use P11D forms to report year-end expenses and benefits for employers who earned £8,500 or more.

To enable the inspector to grant a dispensation you must be able to demonstrate that:

  • No tax would be payable by the employees on the expense payments or benefits
  • Expense claims are independently checked and authorised within your company
  • Each claim is submitted with appropriate receipts

HMRC will need to be certain of reimbursed expenses as well as the method of control used to identify expenses that might be taxable. This is to ensure, among other factors, that if a dispensation was granted, and a taxable payment is made within a category of expense covered by the dispensation, it will be picked up and reported on the relevant employee's P11D form. A dispensation does not mean that the accounting procedures for recording such expenses can be relaxed.

The application must be in writing and may be by letter. Smaller companies may apply using form P11DX, which is accessible on HMRC’s website.

You should give as much detail as possible regarding the kind of expenses paid, the control procedures adopted for authorisation, approval and payment of expenses, as well as a copy of the expenses claim form.

If granted, the dispensation:

  • Will be effective from the date granted - so it is worthwhile applying at any point in the tax year
  • May cover all employees, a class of employees or certain named individuals only
  • Will be reviewed from time to time and may be withdrawn if the conditions are no longer satisfied

RTI payroll in the UK for overseas companies

The RTI payroll legislation for overseas companies changed the way UK payroll services operated. Information being processed is accurately assigned to each employee, ensuring that the correct amount of employer and employee tax is calculated.

The simpler reporting requirements, along with the abolition of the annual tax return at year end, have made life a little easier for overseas companies in the UK as well as UK-based employers.

RTI was designed to modernise the PAYE process and to support the Universal Credit welfare system. The legislation requires UK companies with employees to tell HMRC about PAYE payments when they are made and not at the end of the tax year.

Do you have questions about starting up a UK company? Contact us to speak to an expert consultant.

Contact our business relocation team

South Africa

Regent Square
Doncaster Road
Kenilworth 7708
Cape Town
t: +27 (0) 21 657 2120

United Kingdom

Castlewood House
77/91 New Oxford Street
London
WC1A 1DG
t: +44 (0) 20 7759 7514

Australia

Suite 8.06
9 Yarra Street
South Yarra
Melbourne VIC 3141
t: +613 (0) 86 514 500

Hong Kong

Level 1102
The Lee Gardens
33 Hysan Avenue
Causeway Bay, Hong Kong
t: +852 3959 8681

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