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How Much Does Payroll Cost for Small Businesses in the UK?

Outsourcing payroll in the UK saves time and reduces errors but what does it cost?

Whether you're a sole director or running a team of 20, understanding payroll pricing is key to choosing the right provider.


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Typical Payroll Costs in the UK

Payroll costs depend on your business size, how often you run payroll, and the level of service you need.


1. Director-Only Payroll

  • From £10 to £25 per month

  • Designed for sole directors of limited companies

  • Includes PAYE submissions, payslips, and annual P60

  • Low complexity means low cost


2. Small Business Payroll (1–10 employees)

  • From £20 to £80 per month

  • Price usually based on number of employees and frequency

  • Monthly or weekly pay runs

  • Includes payslips, RTI filing, new starter/leaver setup


3. Medium-Sized Teams (11–50 employees)

  • From £100 to £250+ per month

  • Need for more frequent submissions

  • Additional support for pensions, holiday pay, and reporting


Hidden Fees to Watch Out For

Not all payroll providers are transparent. Look out for:

  • Setup charges (common with software-based solutions)

  • Year-end fees for P60s or summaries

  • Charges per leaver/new joiner

  • Auto-enrolment support often costs extra

  • HMRC query handling not always included


What Affects Payroll Pricing?

  • Pay Frequency: Weekly costs more than monthly.

  • Pensions: Auto-enrolment admin can add £10–£30/month.

  • Industry-specific rules: Construction Industry Scheme (CIS) or IR35 adds complexity.

  • Custom reporting needs: Extra if you want tailored reports for accountants or managers.


Should You Use Software or a Managed Payroll Service?

Software is cheaper, but:

  • You stay responsible for HMRC deadlines

  • You still need to learn how payroll works

  • Support is limited to help docs or chatbots


Managed services (like WorldWage) handle:

  • HMRC compliance

  • RTI and PAYE submissions

  • Payslip delivery

  • Auto-enrolment and pension admin

  • Full support for queries


What Does WorldWage Services Charge?

WorldWage Services offers clear, fixed-fee pricing with:

  • No hidden setup fees

  • Support included

  • Packages for directors, small, medium, and large businesses


 
 
 

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