How does outsourcing payroll work?

It is a very simple process. You just need to sign up with us for a free trial or contact us directly. We will then ask you to provide us with the information for your payroll online. That’s all you need to do. Payslips and reports are sent to your online secure system.

Should I outsource my payroll?

Yes, you definitely should. Business consultants have made it clear that outsourcing some of the non-core functions to professionals can be good for your business. It helps you save time and money, get expertise, ensure compliance with government regulations and make payroll processing safe and secure. Most importantly, you employ your resources on your central functions which allow you to generate more income as well as saving costs.

How much does it cost to outsource payroll?

With 1 employee in your company, dhPayroll is less than £15 per month. We work on a sliding scale so that you only pay for the work we do, and that helps you keep your costs to a minimum. Costs can be as little at £3 per payslip for larger companies with 50 or more employees. We can further reduce by tailoring costs if your payroll is weekly or you have more than 100 employees, so please contact us in any case for further information on the costs. We would be pleased to discuss your requirements and provide you with a quote.

Is outsourcing payroll cost-effective?

Yes, payroll outsourcing is a very cost-effective solution for your business. Think of all the time and money that is spent in calculating payroll in each period, printing, signing and distributing payslips and making payments, software maintenance, keeping up with changes in tax rates and other training issues, recruiting and training payroll staff, along with premises and other IT costs associated with internal payroll staff. Outsourcing is definitely going to cost you less.

When should you outsource payroll?

You should outsource your payroll when you feel that the cost of getting it done in-house is more than outsourcing it to professionals, but also you would like the added benefits of security and simple effective software and secure online access to payslips and P60s for your team. It is best to focus on the core functions of your organisation because that is what drives your business and makes your company successful.

No change to the Employment Allowance for 2021/22 Tax year

Employment Allowance (EA) allows certain businesses who employ workers to reduce their annual National Insurance (NI) bill by up to £4,000 (for the 2021/22 tax year).

For eligible businesses, the Employers NIC liability to be will be reduced by up to £4000.00 in the 2021/22 tax year, allowing the EA claim to be made via payroll real time information submissions. This will reduce the PAYE due to be paid over to HMRC.

This remains the same process and amount as the 2020/21 tax year.

A change in communication from HMRC

HMRC have started sending some employers notices to advise that they may be eligible to claim Employment Allowance for the 2021/22 tax year.. The new notice sent by HMRC is in response to the EU regulations

In order to create a level playing field, the European Commission sets limits on how much assistance can be given without prior approval to organisations operating in a competitive market HMRC are therefore now sending clients a ‘de minimis’ offer letter for the value of the aid under the EA scheme.

If the employer makes a subsequent claim for any state aid during the tax year, they will be required to declare the full Employment allowance amount stated in the notice, if asked, to any other awarding body. After the end of the year employers can declare the amount stated in the notice or the value of the employment allowance actually received.

No additional action required

For Businesses that are already claiming EA through the payroll there is not additional action or application that needs to be made.

dhpayroll will continue to make the Employment Allowance reclaims through the payroll for all our eligible clients, and no further action is required unless there is a change in circumstances that effects eligibility.

https://www.gov.uk/claim-employment-allowance/eligibility