Managing payroll in-house can be overwhelming for UK businesses, especially when you’re juggling complex compliance rules, tight filing deadlines, and ever-changing legislation. That’s why more organisations are choosing Payroll Outsourcing to reduce their administrative burden and improve accuracy.
In this blog, we’ll explore the advantages of outsourcing your payroll, the importance of P60 forms, the critical Deadline for P60, and what to expect when evaluating Payroll Outsourcing Cost.
Why More Businesses Are Choosing Payroll Outsourcing
Payroll processing is more than just paying employees. It involves tax calculations, National Insurance deductions, pension contributions, HMRC filings, and issuing statutory documents. For businesses with limited internal capacity, the risk of making a mistake is high.
With Payroll Outsourcing, companies can shift responsibility to expert providers who ensure compliance, accuracy, and timely execution.
Key Benefits:
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Reduced Errors: Outsourced providers use robust systems to eliminate manual mistakes.
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Regulatory Compliance: Stay up to date with RTI submissions, tax codes, and employment law.
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Resource Efficiency: Free your internal team to focus on growth and strategy.
What Is a P60 and Why Does It Matter?
At the end of every tax year, employers in the UK must issue a P60 to each employee still employed as of April 5th. The form details their total pay and tax deductions for the year and serves as an official record.
Employees use the P60 for everything from loan applications to tax refund claims. A missing or incorrect P60 can delay financial processes and damage employer credibility.
Information Contained in a P60:
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Total gross pay for the tax year
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Income Tax and National Insurance paid
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Employer’s PAYE reference number
Avoid Penalties: Know the Deadline for P60
Missing tax deadlines isn’t just inconvenient—it can result in HMRC penalties. UK employers are legally required to provide employees with their P60 forms by May 31st following the end of the tax year.
Many businesses fail to meet this date due to oversight or internal delays. A reliable payroll partner can help you stay compliant by managing submissions proactively. For full guidance on the timeline, read our guide to the Deadline for P60.
How Much Does Payroll Outsourcing Cost?
If you're considering outsourcing, you're likely wondering about pricing. The good news? Outsourcing is often more affordable than hiring dedicated payroll staff or investing in expensive software.
The Payroll Outsourcing Cost depends on factors like employee headcount, payroll frequency, and services included. Basic packages might cost as little as £3–£6 per employee, per month, while full-service plans can range higher.
Cost Influencers:
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Number of employees
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Pay run frequency (weekly, fortnightly, monthly)
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Add-ons like pension filings or holiday tracking
Final Thoughts
Outsourcing payroll isn’t just about reducing admin work—it’s about achieving better compliance, ensuring employees are paid on time, and delivering essential forms like the P60 without stress. By understanding the critical Deadline for P60, the value of a proper P60, and the real Payroll Outsourcing Cost, businesses can make confident, informed decisions.
If your team is struggling with payroll, consider moving to an outsourcing model that supports growth and peace of mind.
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