The Payroll Power Hour: 10 Frequently Asked Questions for UK Business Owners

Managing a team is rewarding, but managing a payroll can feel like a full-time job in itself. From RTI submissions to pension auto-enrolment, the "admin mountain" only gets steeper as your business grows.

To help you clear the fog, we’ve compiled the top 10 questions we get asked by businesses looking to streamline their payroll services.

1. What is the difference between "managed" and "in-house" payroll?

In-house payroll means you (or an employee) handle all calculations, software updates, and HMRC filings manually. "Managed" or "Outsourced" payroll with Contador means you simply send us the hours worked, and we do the rest—from calculating net pay to filing your RTI returns.

2. How does the "Modulr" integration benefit my business?

Most traditional payroll services tell you how much to pay, but you still have to manually set up bank transfers. At Contador, we use Modulr integrated with BrightPay. This allows you to approve a batch of payments in just a few clicks, and funds are sent via Faster Payments in seconds. No more manual data entry at the bank!

3. What is RTI, and why does it matter?

Real-Time Information (RTI) is the system HMRC uses to collect tax data. You must submit a "Full Payment Submission" (FPS) every time you pay your employees—on or before the day they are paid. Missing these deadlines results in automatic (and often hefty) fines. We handle all RTI submissions on your behalf to ensure you stay compliant.

4. Do you handle Workplace Pensions (Auto-Enrolment)?

Yes. Since 2012, every employer in the UK must provide a workplace pension for qualifying staff. We manage the assessment of your staff, calculate the contributions, and ensure your pension provider receives the correct data every month.

5. What happens if I make a mistake on a previous month’s pay?

Mistakes happen—but they can be tricky to fix with HMRC. We help you perform "Earlier Year Updates" or adjustments in the current period to ensure your records (and your employees' tax codes) stay accurate.

6. How do I handle Statutory Pay (Sick pay, Maternity, Paternity)?

Calculating statutory pay is complex because it involves specific eligibility rules and "qualifying days." We take this off your plate, ensuring your staff are paid their legal entitlements correctly while you claim back any eligible offsets from the government.

7. Can you help me move from weekly to monthly payroll?

Many growing businesses want to move to monthly pay to reduce admin costs. We can advise you on the best "cut-off" dates and help manage the transition for your employees to ensure a smooth changeover.

8. Are digital payslips secure?

Absolutely. Sending payslips via email isn't always GDPR-compliant if not encrypted. We provide secure digital payslips that employees can access via a portal, which is much safer and more convenient than paper or basic emails.

9. What records do I need to keep, and for how long?

HMRC requires you to keep payroll records for at least 3 years from the end of the tax year they relate to. This includes everything from leave and sickness to tax code notices. By using our managed service, these records are stored digitally and are easily accessible if you are ever audited.

10. How quickly can I get started?

Switching is easier than you think. We usually recommend starting at the beginning of a new tax month. You provide us with your employee P11/P45 details, and we can often have your first run ready within a few days.

Ready to hand over the payroll headache? At Contador Accountancy, we don’t just "do the numbers"—we use the latest technology like BrightPay and Modulr to make your payments faster and more secure.