A Step-by-Step Guide to Seamless Payroll Outsourcing Services in London

Running an accounting practice successfully in London is a commendable achievement, after all, it is a highly competitive location. However, you will agree with us that it is a highly stressful responsibility. The cutthroat competition followed by complying with complex UK payroll regulations has made things very complicated. To overcome these challenges, accounting practices have found it ideal to hand over the payroll responsibility from their in-house payroll team to an experienced outsourced accounting service provider offering payroll outsourcing services in London location. So, is the problem solved? Well, not completely.

As we have mentioned, the payroll regulations in the UK are complex, and HMRC is rightly enforcing them effectively. No matter how fair, this action creates additional pressure on accounting practices. These additional pressures are in the form of increased compliance requirements which demand further investments in recruitment and related infrastructure. Naturally, addressing the challenges arising from strict payroll regulation enforcement and location-based competition will strain your pockets. But do not worry; we have a way out. Have you heard about location-based payroll outsourcing services offered by service providers? We bet you do.

The London-specific payroll outsourcing services have brought tremendous relief to accounting practices based in London. So, if your accounting practice is catering to clients in London then it will help you considerably. It has already helped many accounting practices become much more efficient, reduced operational expenses, and satisfied customers to a great extent. However, there is a catch, to fully benefit from London-specific payroll outsourcing services, you must choose an outsourced service provider who can meet your ongoing needs. For that, you will have to follow a few important steps.

We have outlined the steps below which are as follows:

Set Your Payroll Service Requirements Before You Start the Search

While operating in London you must have faced some unique challenges. Note down those challenges along with other requirements that you want the payroll service provider in London to fulfil. Based on those requirements, select a bunch of service providers capable of satisfying your needs. Also, find out which among them can handle payments to HMRC efficiently. It will also be a bonus if they offer extra services such as pensions administration, P11d reporting of benefits to HMRC at year-end, and P45/P60 production.

Check Their Ability to Handle Compliance Requirements

Your accounting practice cannot afford to take compliance requirements lightly, especially when you are operating in a tough London environment. That’s why you will have to zero in on a service provider offering payroll outsourcing services in London which will ensure full compliance with HMRC requirements on your behalf. It will reduce your compliance burden by directly dealing with HMRC tax notices on your behalf.

Payroll service providers must also comply with other areas, including auto-enrolment pension requirements and holiday pay regulations. The HMRC rules and regulations are constantly updated, so it would be ideal to select a service provider that monitors them thoroughly.

Go Through their Data Security Credentials

Finding a service provider that offers secure payroll outsourcing services in London should be your mission. Hence, it is vitally important to find a payroll service provider that complies with GDPR to protect your client’s sensitive information from significant data breaches.

During the selection process, ask specific important questions, such as what security measures they have put in place, whether data is stored in London, other parts of the UK, or out of the country, how they handle data breaches, and whether they have ever occurred. A reputable payroll outsourcing service provider will always have a tried-and-tested plan in place. Inquire about it and make sure it is regularly updated.

Flexibility in Their Services

London’s accounting market is highly dynamic that’s why when searching for an outsourced payroll service provider, remember the flexibility requirement. The service provider must also be flexible enough to make amendments, such as considering new joiners and leavers. Other emergencies cannot be ruled out, and it is worth checking whether it can handle them. If there is any unique requirement, determine whether they can customise their services to meet your demands.

Check the Payroll Provider’s Reputation

Once you have shortlisted a set of outsourced payroll service providers, it is important to research the provider and the people running it in detail. Almost all the professional service providers offering payroll outsourcing services in London, like Corient UK, have testimonials and case studies on their websites. You must go through them to identify the challenges they have faced while catering to accounting practices in London and what solutions in the form of methods or processes they have invented to overcome them. You can also check out their social media account for the latest information. To know about Corient’s achievements check out our case studies section.

Cost of Arrangement

Cost will always be an important factor when deciding on a payroll outsourcing service provider, and the tough part is that you will never get an exact answer from any service provider, especially when it comes to competitive locations like London. In such locations, many factors such as local regulations, and competition will influence the payroll cost. For instance, most outsourced payroll service providers will charge on a per-payslip basis. However, many providers charge extra for certain services, such as tax-year-end processes, P45 distribution, or P60 production. These costs have to be taken into consideration.

Hence, you need to ask the service provider for a breakdown of their cost for payroll outsourcing services in London and the UK. It is highly advised to insist on an agreed fixed price so that you know how much you are paying each month.

Ability to Scale Up and Scale Down as Per Your Requirement

As your clients expand their business, you must scale up your payroll services accordingly. But dramatically scaling up or down your payroll services with limited staff is not possible, and that’s where payroll outsourcing service providers come into the picture. 

While searching for payroll outsourcing services in London make sure it has the capacity to ramp up its services when you require it. Such ramping up will increase your outsourcing cost. Still, it is important to know whether the payroll outsourcing service provider you select has the resources to accommodate service scaling up. Also, when your clients scale down their operations during lean periods, the selected payroll outsourcing service provider must have no objection to scaling down.

Check Their Communication Process and Customer Support

You cannot afford to be on a lurch after outsourcing, especially when something goes wrong, and you will require expert help. A professional service provider offering its payroll outsourcing services will always dedicate a single-point payroll administrator to your service. This person will take care of your account and resolve any issues that crop up proactively. This single-point person will also establish robust communication with you to exchange views and doubts, which is very important, especially during the onboarding phase.

Also, make sure to check out how they handle communications with third parties like HMRC on your behalf. Such communications are time-consuming for your in-house payroll teams, so outsourcing them will benefit you.

Software Integration

You might assume that software integration is a done-and-dusted process, but it’s more complex. You must be absolutely sure about the payroll outsourcing service provider you choose because its outsourced payroll system must integrate with your system to ensure a seamless transfer of information. This way, accurate information is passed automatically without any manual intervention, thus reducing potential errors.

Monitor Performance and Seek Feedback

Even after a smooth transition, it’s essential to monitor the performance of your outsourced payroll services regularly. Review the provider’s performance against the SLAs and gather feedback from your in-house payroll team. This feedback can help you identify any areas for improvement and ensure continued satisfaction with the service.

Conclusion

Deciding to outsource your payroll responsibility to an outsourced payroll service provider is a big decision, but an even more important decision is choosing the right payroll service provider. Following the above-listed steps will help you find the right professional service provider offering payroll outsourcing services in London and the UK.

The importance of these steps can be derived from the fact that the London accounting market is highly saturated with multiple payroll outsourcing service providers, making your choosing task difficult. Amongst these service providers, London-based accounting practices are finding Corient UK very attractive.

Corient UK is a highly-ambitious outsourced accounting service provider based in Coventry, United Kingdom. Our speciality is in offering a wide range of accounting services to the UK and London-based accounting practices. Not just payroll, we have considerable experience in bookkeeping, year-end, management accounts, corporation tax, and audit services. Our tech-savvy services have brought transformational changes to countless accounting practices, and we can perform the same for you. Feel free to share your doubts and requirements on our website contact form, and our executive will contact you as soon as possible.

We are hoping for a long and fruitful association.