Running a successful trades business in the UK comes with its fair share of challenges. If you’re struggling to keep up with the demands of running your business, you’re not alone! From project management and keeping your clients happy to staying up-to-date with paperwork and industry regulations, I know your plate is more than full! Managing payroll for your employees and subcontractors is likely one of your biggest headaches. Many small business owners like you find themselves buried under paperwork and having to process payroll just adds to this. What if I told you there was a solution? One that could save you time, money, and headaches? Outsource your payroll!
In this blog, ‘Outsource Your Payroll: A Quick Guide for UK Tradespeople,’ we’ll have a look at the pros and cons of outsourced payroll for UK-based tradespeople, answering common questions and shedding more light on the benefits.
Does Outsourcing Your Payroll Save Money?
One of the first questions that small business owners ask. Will it save me money? The short answer is YES! While there could be an initial cost in getting everything set up, the long-term savings will far outweigh this.
Consider some of the expenses involved in managing payroll in-house. Software subscriptions, staff training and wages for payroll processing, potential penalties for errors. Not to mention the time spent ensuring that you’re being compliant with pensions and tax regulations. Outsourcing your payroll takes away these costs. It offers you a flat fee for professional services that can ultimately save you both money and time.
What Are the Benefits of Outsourcing Payroll?
The benefits of outsourced payroll go beyond the cost savings. Here are some key advantages:
- Time Savings: Your time is precious, especially if you’re juggling multiple projects and deadlines. Free up some of that valuable time to focus on growing the business, giving your clients a more personal service, or just enjoying more time with your family.
- Expertise and Compliance: Reduce the risk of errors and penalties. Increase efficiency and compliance with complex issues such as tax, national insurance contributions, sick pay, maternity pay, pension requirements, and more. Everything would be handled by a qualified payroll professional.
- Security and Confidentiality: Remove the risk of sensitive information being shared among staff, seen on desks etc. Conversations among staff about who earns what etc. shouldn’t happen but we all know that they do! Outsourcing to an independent professional keeps you fully GDPR compliant.
- Scalability: As your business grows, so do your payroll needs. Outsourcing means that there’s a dedicated professional ready to make changes as you need them. New members of staff, pay rate changes, tax code amendments, pension opt-ins or outs, will all be added to your system quickly.
- Access to Technology: Advanced payroll software and tech may be included in the price, streamlining your payroll process and improving efficiency. Integrate with your accountancy software and time-tracking systems so you have access to your numbers in real time.
What Is the Biggest Challenge of Running Payroll?
The biggest challenge for many tradespeople has to be the time and effort that payroll takes. Calculating wages and deductions with ever-changing rates means payroll can become quickly overwhelming, especially for small businesses with limited resources. If you could be out earning instead of sitting for hours working out what to pay everyone, outsourcing your payroll might even pay for itself.
Outsourcing your payroll passes the task on to someone qualified and experienced at dealing with it more efficiently. They will keep on top of changes made by the government and HMRC so you don’t need to worry about getting things wrong.
How Much Does It Cost to Outsource Your Payroll?
The total cost of outsourcing your payroll can depend on several things. Here are a few:
- Are you outsourcing it all or just part of it?
- How many employees do you have?
- Is payroll processed and paid weekly, bi-weekly, or monthly?
- Do you want your auto-enrolment duties to be taken care of?
- Will the records need integrating with other software?
Whilst it might sound like a cheaper option to outsource just part of your payroll, it likely won’t work out that way in the long term once you factor in software and staff. The cost of outsourcing payroll varies and can be roughly £4 – £25 per employee, per month depending on the above and how complex the requirements are. There is also likely to be a one-off set-up fee from most payroll providers.
How Can Kettlewell Virtual Assistance Help with Payroll?
As a trades business owner myself, I understand the challenges that tradespeople and small businesses can face when it comes to processing their payroll. Winging it or, even worse, getting it wrong could be a disaster. Financially, you could face penalties from HMRC but, not only that, it’s not good for staff morale. When people work hard, they expect to be paid the correct amount on time. If your employees receive their wages wrong on a Friday, they’re not going to be happy and it could lead to financial difficulties for them and their families.
I offer a complete payroll service that will take the stress away, allowing you to focus on what you do best – running and growing your business! You’ll have access to regular support and updates so that any questions are answered quickly. Follow me on Instagram to learn more.
Ready to outsource your payroll? You can contact me on 07967 034560 for more information and a personalised quote.