Initor Global guide to Outsourcing Payroll Services

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Payroll Outsourcing

If you are a UK Accounting Practice looking to increase or enhance the scope of services offered to clients, or a business looking to increase the efficiency of Payroll services, you should consider outsourcing to a supplier such as Initor Global.

Many businesses do not know where to start to identify those parts of a Payroll service suitable for outsourcing and have no insight into the costs and benefits involved. This blog attempts to break down some of the barriers businesses perceive when considering outsourcing Payroll services while providing examples of the many benefits which can be secured.

What does outsourcing Payroll mean for a UK Accounting Practice?

Outsourcing Payroll services means a specialist supplier (or ‘partner’) will take responsibility for operating all, or specific parts of the Payroll services provided to clients. You can outsource part of a service, such as preparing the monthly payroll run or year-end tax Forms, or the whole end to end process, from setting up a payroll service to calculating contributions to pension providers.

The outsourced services will usually be provided offshore from jurisdictions such as India or Asia, and will need to be fully compliant with HMRC’s rules, UK legislation and data protection requirements. As a UK Accounting Practice, you will need assurance the outsourcing partner has sufficient capacity, including skilled and experienced individuals, to ensure the UK’s regulatory requirements are met.

At a minimum, you should seek an outsourced supplier who is GDPR and ISO27001 compliant and who can provide assurances over client data security. You should also enquire about the qualifications and accreditations the individuals providing your outsourced Payroll services hold.

Most outsourcing partners will have experience of cloud based accounting software and will provide services seamlessly to your clients. Integrating outsourced services with the operating framework of internal controls, systems and performance reporting already used by a Practice is essential to ensure the quality of services provided.

Why should a UK Accounting Practice outsource Payroll services?

The following paragraphs provide some insight to the benefits a UK Accounting Practice can secure from an outsourced Payroll solution.

A compliant Payroll service

Many UK Accounting Practices and small businesses struggle to find the experts they need to provide a fully compliant Payroll service. With an outsourced solution, businesses will have access to a team of experts who will provide assurance that every Payroll run is accurate and filed on time, ensuring the risk of incurring fines or penalties from regulators is reduced.

Reduced costs and increased quality

The cost of outsourcing Payroll services is typically 50% less when compared to the equivalent services provided in-house. With an outsourced solution, there is no need to maintain an in-house Payroll service at all. When implementing an outsourced solution, UK Accounting Practices often find the review of internal systems and processes needed secures wider efficiencies for a business, such as the automation of tasks and more effective document management.

With an outsourced partner focused on delivering the tasks and processes an Accounting Practice needs, the quality and accuracy of Payroll runs is improved, reducing the risk of punitive fines from HMRC for your clients.

Clients can access more services

Using an outsourced solution allows an Accounting Practice to scale up and confidently offer Payroll services to meet clients’ needs. It also ensures a Practice has the capacity to deliver growth in revenues, and that clients have access to all of the services they need as they prosper.

Reduced risk of service failure

Many UK Accounting Practices provide their Payroll services using a dedicated team of qualified individuals. The Payroll service is seen as specialised and is not part of the core accounting business. However, reliance on a small team presents a high risk of service failure should individuals leave a Practice at short notice, and if you cannot access a suitably qualified or experienced replacement in time. With an outsourced Payroll solution, an Accounting Practice has access to a large team of experienced individuals who can provide the continuity of service needed.

Removing recurring tasks helps develop people

Some UK Accounting Practices are nervous about outsourcing any service because of the perceived negative reaction among their people. However, the removal of recurring tasks from the day to day workload of Payroll professionals means they have more time to spend understanding the needs of clients and upselling services. Less time is spent on tasks such as processing the monthly payroll and data management, allowing individuals to focus on their continuing professional development and building the skills needed for the future growth of an Accounting Practice.

When is the best time to outsource Payroll services?

 Accounting Practices will need to consider carefully the skills and expertise available to deliver Payroll services, particularly when preparing plans for growth or extending the scope of services offered to clients. Payroll is a specialised profession and requires qualified individuals who are up to date with industry developments and legislative changes. Not all Accounting Practices will have sufficient capacity to meet the requirements of regulators, particularly when statutory deadlines are due, which can expose clients to the risk of fines and penalties from HMRC. To mitigate these risks, Practices should consider outsourcing at key stages in their business planning cycle or when a peak of work is expected, such as tax year end and the start of a new tax year.

What should I look for in an outsourcing partner?

UK Accounting Practices will need an outsourcing partner with the skills, capacity and experience to deliver end to end payroll services. Practices should look for a partner with a strong track record of serving the types of clients they engage, whether these are Owner Managed Businesses with a single employee or SMEs with large numbers of employees and a diverse payroll to run.

You will need to ensure you have access to operational managers responsible for delivering the Payroll work you have outsourced, to discuss any matters affecting your service and to seek opportunities to outsource other recurring tasks for your Practice

Most importantly, Practices will need assurance the services provided are fully compliant with HMRC and other regulatory requirements. Seeking references from existing customers of your outsourcing partner is essential to provide an indication of how your relationship will work.

Which Payroll services can be outsourced by an Accounting Practice?

All processes and tasks needed to operate an Accounting Practices’ client payroll can be outsourced. Initor Global provides all end to end payroll services, including:

Monthly or weekly payslips Payroll reports
Setting up PAYE scheme with HMRC PAYE and National Insurance calculations
Real Time Information (RTI) submission to HMRC Pension reporting
Year-end Form P60 and PIID reports and HMRC submission Issuing Form P45 to leavers
Downloading and updating Form P6, Form P9 notices Statutory payments
Setting up payroll for and new companies Enrolling new employees
Submission of information to Pension Providers Creating government gateways

Initor Global has been providing end to end Payroll services to Accounting Practices and other businesses across the UK since 2006. Our customers rely on us to provide a fully compliant service, meeting the needs of their clients and employees.

If you are looking to take your Accounting Practice to the next level, and provide effective Payroll services while reducing costs, you can arrange a free consultation with our expert team.

We offer a free, no-obligation trial of our Payroll service.

Please contact us on  or visit our website at

You can also call us on 0203 519 2121