How easy is it to Manage your own payroll? Why you need a good bookkeeper

Do you do your own Payroll? Most ordinary non-bookkeeping mortals find it tough to get to grips with the system, and very few are naturals. Unless you're a Payroll whiz, figuring these things out as you go along can be very difficult, if only because it takes so much time. Worse still, things keep on changing. Do you know about HMRC's Real Time Information process? Are you comfortable putting new employees on the right tax code?

Luckily, with the right guidance and procedures Payroll needn't be a nightmare. Plenty of accountants offer Payroll support, and there are some top class online accounting systems with integrated Payroll tools rolled in. Here's what you need to know to make a sensible choice.

Choose how you want to operate your Payroll

If you operate PAYE in your small business, you have a choice about how to run your Payroll. You can either pay someone else to do it for you, or do it yourself using payroll software.

If you decide to hand it over to your accountant, you'll still have to collect and keep records of your employees' details. Without the information, your accountant can't run your Payroll for you. Some payroll service providers can offer support with keeping employee records, providing payslips and making payments to HMRC. But you remain legally responsible for all the relevant PAYE tasks.

Alternatively, you can do the whole thing yourself. This involves knowing in detail exactly what you need to do, when, why and for whom. If you're paying an employee for the first time there's a set of specific and essential actions to carry out, things like registering as an employer and letting them know exactly who you employ.

There are some exemptions, which you also need to be familiar with. You might not have to report Payroll matters online if your religion says you can't use a computer, you or a family member are getting care or support services, or you can't handle electronic reporting because of old age, disability or simply because you don't have internet access. In which case you will need to report Payroll to HMRC on paper.

Are Payroll services worth the money?

Is it worth paying for? It depends how confident you are in your knowledge and abilities, and how much time you have spare. It isn't, after all, something you can shelve for another time when you're too busy. Nor can you expect staff members to handle it for you, unless they're skilled in Britain's ever-changing and horribly complex Payroll legislation. If you're very fortunate you might be in a position to employ an experienced and dedicated staff member, but in the great scheme of things most small businesses can't afford that.

All this makes outsourcing an increasingly popular option. Handing over responsibility to a dedicated payroll service, for example your accountant, relieves you of a nasty ongoing burden that can easily end up the bane of your business life.

What you get in return

You claw back lots of lovely time to focus on business growth and development

You don't have to stay ahead of rules, regulations and fast-changing legislation

The best services guarantee compliance with HMRC, a weight off your shoulders

There's no need to pay a dedicated staff member

Payroll gets handled quickly, efficiently and painlessly every month

Your people get paid the right amount at the right time

Where to find a great Payroll support service

Some business banking accounts come with Payroll included. Barclays Bank, for example, charges £50 plus VAT for the first year, covering up to five employees. For subsequent years the bank charges £50 plus VAT per employee, per year. The deal includes electronic payslips, reports, extra payments like overtime, plus handy year-end reporting.

SageOne takes a different tack, a kind of hybrid DIY payroll system that's stored in the cloud, great for small businesses who don't want to outsource 100% but also don't fancy knuckling down and learning employment law, buying Payroll software, and finding out about HMRC filing.

Good accountancy practices often offer Payroll services. Expert bookkeepers like us do, too. If you'd like to get rid of the whole kit and caboodle and hand it over to local experts, we'd be delighted to talk. Just give us a call or send us an email.