Pay calculations, payslips, RTI and employer liabilities
Payroll Services in Cardiff
We run payroll from the information behind each pay period, calculate deductions and employer costs, issue payslips and submit the Full Payment Submission before the reported payday.
For directors, owner-managed companies, professional firms, shops, hospitality businesses, construction companies, charities and growing employers across Cardiff and South East Wales.
Payday drives the reporting date
When does an employer need payroll support?
Payroll should be set up before the first payment and reviewed whenever staff, hours, benefits or pension duties change. Waiting until after money reaches employees can create incorrect payslips and late RTI reporting.
Read the official payroll process ↗The business is about to pay someone for the first time
PAYE registration, payroll software, employee information and workplace-pension duties need addressing before payday.
Weekly, fortnightly, four-weekly or monthly payroll is taking time
A clear cut-off and approval process keeps hours, overtime, bonuses, deductions and leave changes within the right period.
A limited company wants to pay a director through PAYE
Director National Insurance rules and the connection with company accounts, dividends and personal tax need consistent records.
Someone joins, leaves, changes pay or starts family-related leave
Starter declarations, P45 information, tax codes, final pay and statutory-payment evidence affect the calculation and RTI data.
Automatic-enrolment assessment or contributions are due
Worker age, earnings, postponement, opt-in or opt-out status and the pension scheme basis must be reflected in payroll.
HMRC's PAYE balance differs or an earlier submission was wrong
The payroll records, FPS, EPS and payments should be reconciled before corrected year-to-date figures are filed.
From gross pay to employer reports
What our payroll service includes
The scope is agreed around the pay frequency, number of workers, pension scheme and level of change. Employment decisions remain with the employer; we turn approved information into the payroll and required reports.
Payroll data review
Employee records, tax codes, National Insurance categories, salary, hours, overtime, bonuses and deductions are checked against the approved input.
Gross-to-net calculations
PAYE, employee and employer National Insurance, pension, student loans, attachments and statutory payments are calculated where applicable.
Payslips and employer report
Electronic payslips and a payroll summary show employee net pay, deductions and the total cost to the employer.
RTI submissions
The FPS is submitted on or before payday; an EPS is used where reductions, no-payment periods or other employer information must be reported.
Starters, leavers and year end
Starter declarations, P45 leaver records, final-year reporting and P60 information are processed from the employer's instructions.
PAYE and pension liabilities
Amounts due to HMRC and the pension provider are separated from employee net-pay totals and confirmed after the run.
Each completed run can provide payslips, payroll summary, net-pay schedule, RTI receipt and PAYE and pension liability figures.
How the fee is scoped →One controlled pay cycle
How approved payroll information becomes net pay and RTI
The calculation is only reliable when the people, period and payment date are correct. We use a repeatable cut-off so that late changes do not disappear between the payslip, bank payment and HMRC record.
- InputsApproved pay and employee changesSalary, hours, overtime, bonuses, leave, benefits, starters and leavers.
- CalculateGross pay and statutory paymentsUsing the correct pay period, average earnings and eligibility information.
- DeductPAYE, National Insurance and other deductionsIncluding pensions, student loans and attachment orders where instructed.
- ApprovePayslips, net pay and employer costThe employer reviews the payroll before employee payments are released.
- ReportFPS on or before the reported paydayThe payment date in RTI must reflect the normal payday under the reporting rules.
- SettleHMRC and pension-provider liabilitiesSeparate deadlines and references are confirmed after the payroll is final.
2026/27 payroll figures
National Insurance and the employer payroll cost
For most employees in 2026/27, employee Class 1 National Insurance is 8% between £1,048 and £4,189 a month, then 2% above that. The standard employer rate is 15% above the applicable secondary threshold, normally £417 a month.
Category letters and special zero-rate thresholds can change the result for some employees, including qualifying under-21s, apprentices and veterans. Eligible employers may reduce employer National Insurance using Employment Allowance.
Check the official 2026/27 employer rates ↗For most employees between the monthly primary threshold and upper earnings limit.
Normally above £417 a month for 2026/27, subject to category and relief.
For most employees above £4,189 a month.
For eligible employers; eligibility and connected-company rules must be checked.
The tax month runs from the 6th to the 5th
RTI and PAYE payment deadlines
The FPS date follows the employee's payday, while the EPS and PAYE payment follow the end of the tax month. Paying HMRC quarterly does not make the FPS quarterly.
Confirm employee changes
Agree pay, hours, leave, new starters, leavers and deductions early enough to check them.
Submit the FPS
Report everyone paid, the payment date, pay and deductions through RTI.
Submit an EPS when required
Report statutory-payment recovery, Employment Allowance information or a period with no employee payments.
Pay electronically
Cleared electronic payment is normally due by the 22nd; non-electronic payment is normally due by the 19th.
Before the first payday
Setting up PAYE for a new employer
Employer registration normally needs completing before the first payday, but not more than two months before the business starts paying people. Payroll software then uses the PAYE and Accounts Office references issued after registration.
The first employee record should be based on a P45 or starter declaration. Employment status and the employment contract are the employer's responsibility; payroll should not be used to disguise a worker who has been treated incorrectly.
Check when an employer must register for PAYE ↗Director pay is company payroll
Payroll for limited-company directors
A director paid a salary is normally an employee for PAYE. Tax is calculated through the tax code, while director National Insurance is usually tested on an annual earnings basis or an alternative method reconciled later in the tax year.
The payroll record should agree with the company's bank, director's loan account, statutory accounts and any dividends. A payslip cannot turn an undocumented withdrawal into salary retrospectively.
Connect payroll with the Corporation Tax service →Reported through PAYE under the approved pay arrangement and actual payment date.
Calculated under the applicable director method and category, with an annual check where required.
Kept outside payroll and supported separately by distributable reserves and company paperwork.
Business reimbursements, payrolled benefits and P11D items require their correct route.
Personal withdrawals and amounts introduced are reconciled separately from salary and dividends.
Salary, dividends and benefits can feed the director's return.
Self Assessment service →Every change needs an effective date
Starters, leavers, variable pay and statutory payments
The payroll calculation follows employment information supplied and approved by the employer. We identify missing evidence before using a tax code or statutory-payment result.
- P45 details or starter declaration
- Correct tax-code basis
- National Insurance number and category
- Student or postgraduate loan questions
- Pension assessment from the duties start date
- Actual leaving date and final pay period
- Holiday, notice and other final amounts
- Final FPS details and P45
- Post-employment payments reviewed separately
- Pension-provider update where required
- Statutory Sick Pay from qualifying evidence
- Maternity, paternity and adoption pay
- Shared parental and bereavement pay
- Neonatal Care Pay where applicable
- Employer recovery reported through EPS
Rates applying in 2026/27
Statutory pay requires eligibility and earnings checks
Software can calculate a rate only after dates, average weekly earnings and entitlement have been established. The employer should retain the leave notice, medical or other evidence and the decision communicated to the employee.
The lower of £123.25 a week and 80% of average weekly earnings under the rules applying from 6 April 2026.
The lower of £194.32 and 90% of average weekly earnings after any earnings-related opening period.
Eligible family-related statutory payments are generally recoverable at 92%, or 109% for qualifying smaller employers.
Payroll supplies the assessment data
Workplace pensions and automatic enrolment
For 2026/27, automatic enrolment generally applies to eligible workers aged from 22 to State Pension age who earn more than £10,000 a year and ordinarily work in the UK. Workers outside that group can still have opt-in or joining rights.
Under the standard qualifying-earnings basis, contributions are normally calculated on earnings between £6,240 and £50,270, with a minimum total contribution of 8% including at least 3% from the employer. A scheme can use a different certified basis.
Check 2026/27 automatic-enrolment thresholds ↗Assess the workforce
Age, qualifying earnings, worker status and postponement determine the action for each pay reference period.
Apply the scheme basis
Qualifying earnings, pensionable pay, tax relief method and contribution percentages must match the provider setup.
Process joins and opt-outs
Valid provider notifications and statutory windows determine deductions, refunds and future assessment.
Send and reconcile contributions
Payroll output is matched with the provider schedule and amounts paid by the employer.
Complete employer duties
Declarations and re-declarations remain the employer's legal responsibility even when support is delegated.
National Living Wage from 1 April 2026
£12.71 per hour for workers aged 21 and over Check all current minimum-wage rates ↗A salary figure is not the full minimum-wage test
Hours, age, deductions and pay reference periods matter
From 1 April 2026, the hourly minimum is £12.71 for workers aged 21 and over, £10.85 for ages 18 to 20, and £8.00 for under-18s and qualifying apprentices.
The compliance calculation can differ from the apparent hourly rate where there is unpaid working time, uniform or tool deductions, salary sacrifice, accommodation or a change of age or apprentice status. Employers remain responsible for time and employment records.
The pay pattern shapes the work
Payroll support for Cardiff employers
We set the cut-off, reports and checks around how the employer actually pays people rather than forcing every business into one monthly template.
Practices, consultants and agencies
Monthly salaries, directors, bonuses, benefits and pension contributions should agree with project and company records.
Restaurants, cafés, hotels and events
Variable hours, starters, leavers, tronc arrangements, holiday and minimum-wage records need a firm recurring cut-off.
Shops, ecommerce and customer services
Rotas, overtime, commission, seasonal staff, statutory leave and pension assessment can change each pay period.
Trades and construction companies
Employees and CIS subcontractors require separate treatment; payroll should not be used to avoid a proper status decision.
Care, health and shift-based services
Irregular hours, sleep-in or travel time, sickness, leave and pension deductions require clear approved time records.
Charities, clubs and social enterprises
Part-time staff, multiple roles, volunteers, grants, salary sacrifice and pension eligibility need distinct records.
Before the payroll is released
Payroll checks that protect the employer and employees
A payroll can calculate without producing an obvious error message. The review therefore compares current input, prior pay, cumulative values and the employer's payment obligations.
- Unique employee records and identifiers
- Starter, leaver and tax-code changes
- NI category, age and director status
- Bank and contact detail approval
- Basic pay, hours, overtime and bonuses
- Holiday, sickness and family leave
- Deductions and salary sacrifice
- Movement from the previous period
- Normal payday and FPS timing
- Year-to-date tax and NI values
- EPS reductions and no-payment periods
- RTI receipt and correction status
- Net pay and employer payroll cost
- PAYE balance and payment reference
- Pension contribution schedule
- Accounts and payroll-control reconciliation
Correct the record, not only the next payslip
Late FPS reports, payroll errors and PAYE differences
If the current tax year is wrong, a corrected FPS should normally be sent as soon as possible with corrected year-to-date figures. Earlier-year corrections follow the route available for that year and software.
Where HMRC's PAYE account differs from payroll, we compare every FPS, EPS, payment, allocation and amended value. Re-running payroll without tracing the difference can duplicate rather than solve it.
Check how payroll reporting errors are corrected ↗Confirm the actual payment date and applicable late-reporting reason before filing.
Correct the employee record, payslip, net pay and cumulative RTI values consistently.
Investigate identifiers and payroll records before changing an employee number or sending another FPS.
Reconcile FPS, EPS, HMRC charges, payments and allocation references tax month by tax month.
Establish filing and payment facts before deciding whether correction, payment or appeal is appropriate.
A secure, repeatable handover
Information needed to run payroll
We agree a cut-off and secure exchange method. The employer confirms that the people, payments and employment decisions supplied are complete and authorised.
PAYE and Accounts Office references, legal details, pay frequencies, normal paydays, pension scheme and prior payroll records.
Name, address, date of birth, National Insurance number, start date, P45 or declaration, tax code and student-loan information.
Salary, approved hours, overtime, bonuses, commission, expenses, deductions, leave, sickness, starters and leavers.
Scheme basis, worker category, postponement, join or opt-out notice, percentages and provider identifiers.
Year-to-date balances, employee identifiers, filing receipts, outstanding corrections, HMRC account and pension contribution history.
Moving without losing year-to-date data
How we take on and run a payroll
The safest changeover point is the one with complete cumulative balances and clear responsibility for the next FPS. We can review a mid-year handover where the records permit.
- 01
Scope the payroll
Confirm workers, frequencies, pension scheme, services, deadlines and current provider.
- 02
Verify setup data
Check employer references, employee records, year-to-date figures and the last accepted submissions.
- 03
Agree cut-off and approval
Set the recurring date for changes and name the person authorised to approve each payroll.
- 04
Run, check and file
Prepare the payroll, resolve queries, obtain approval and submit RTI on time.
- 05
Close the pay period
Release reports and confirm net pay, PAYE, pension liabilities and outstanding actions.
A recurring fee based on the payroll
Payroll service fees
The quote reflects pay frequency, number of people, pension work, employee changes, reports and the condition of any payroll being transferred. Regular input supplied by the agreed cut-off keeps the service predictable.
Ask for a payroll quotePay frequency and headcount
Weekly payroll with variable staff creates more runs and changes than a small fixed monthly payroll.
Pension duties
Assessment, contribution schedules, new members and opt-out processing affect the recurring work.
Employee changes
Starters, leavers, variable hours, attachments, statutory pay and benefits need additional processing.
Handover or corrections
Missing year-to-date data, rejected submissions and PAYE differences are scoped separately from the routine run.
Direct answers for employers
Payroll service questions
These answers cover the points that usually determine the setup, deadline and scope.
When must an FPS be sent to HMRC?+
The Full Payment Submission is normally sent on or before the date employees are paid. The normal payday should be reported even where wages are paid early because it falls on a weekend or bank holiday. Limited exceptions allow late reporting.
When is PAYE paid to HMRC?+
Monthly electronic payments must normally clear by the 22nd after the tax month ends. Non-electronic payment is normally due by the 19th. Employers whose average monthly liability is below the relevant limit may arrange quarterly payments, but must still report payroll through RTI each pay period.
Can you take over payroll part-way through the tax year?+
Yes, if reliable year-to-date employee balances, employer references and the latest accepted FPS and EPS information are available. We first establish who is responsible for the next report so that a payment is not omitted or duplicated.
Do I need PAYE for a director-only company?+
It depends on whether and how the director is paid. A PAYE scheme may be required where earnings reach the relevant PAYE or National Insurance reporting conditions, or where benefits or other employees are involved. We review the actual proposed payment rather than assuming every director needs the same salary.
Does payroll include workplace-pension support?+
We can assess payroll data, calculate deductions and employer contributions, process instructed joins and opt-outs, and produce provider schedules where agreed. The employer remains legally responsible for choosing a qualifying scheme, communicating with workers and completing declarations correctly.
What happens when no employees are paid in a tax month?+
An Employer Payment Summary may need to report that no employees were paid. It should normally reach HMRC by the 19th after the tax month to avoid an estimated charge or filing notice.
Can an incorrect payslip or FPS be corrected?+
Yes. The correction route depends on the tax year and what was wrong. Current-year errors are normally corrected through an FPS using corrected year-to-date figures. Employee pay, the replacement payslip and HMRC reporting should all agree.
When must employees receive a P60?+
An employee still working for the employer on 5 April must normally receive a P60 by 31 May. Leavers receive a P45 instead, while benefits not payrolled can have separate P11D reporting.
Is payroll the same as employment or HR advice?+
No. Payroll applies the employment, pay and leave decisions provided by the employer. Employment contracts, dismissal, holiday entitlement, worker status disputes and regulated pension advice may require an employment-law, HR or authorised pension specialist.
Before the next payday
Set a payroll cut-off that leaves time to check the figures
Tell us the headcount, pay frequency, next payday and current payroll position. We will identify the handover information and give you a clear scope before the first run.
Payroll information reviewed 3 September 2026. Rates, thresholds and employment facts must be checked for the relevant pay period.