A plain-English explanation of what a UK payroll bureau does, how the monthly process works, what is included in the service, and how it differs from payroll software or an accountant.
A payroll bureau manages the full monthly payroll process on behalf of a UK business. This includes collecting payroll data, calculating PAYE, National Insurance and pension deductions, producing payslips for all employees, filing RTI (Real Time Information) submissions with HMRC on or before each payday, processing starters and leavers, and providing a monthly employer summary with the HMRC payment figure. The business sends the data. The bureau handles everything else.
What a payroll bureau handles every month
The monthly payroll process has more moving parts than most business owners realise until something goes wrong. A managed bureau owns all of them.
01
Data collection
The bureau requests any changes from the client — new starters, leavers, pay changes, bonuses, sick pay, any notes. If nothing has changed, the previous month’s data rolls forward.
02
Payroll processing
PAYE income tax, employee NI and employer NI are calculated for every employee. Director NI is calculated on the annual basis method. Pension contributions are applied based on the enrolment position.
03
Payslip production
Payslips are prepared for every employee showing gross pay, all deductions, net pay and year-to-date figures. Issued digitally or in any format the client requires.
04
Employer approval
A payroll summary is sent to the client for review before any HMRC submission is made. The client approves the figures. This is the control point.
05
RTI filing
A Full Payment Submission is filed with HMRC on or before the date of payment. This is a legal requirement under Real Time Information. The bureau files this — not the client.
06
PAYE liability confirmation
The employer is told exactly how much to pay HMRC and by what date. The bureau does not make the payment on behalf of the client.
07
Records and audit trail
Every payslip, every RTI submission, every approval and every communication is recorded. Available if HMRC queries arise.
What a payroll bureau does at year end
At the end of the tax year (April), the bureau completes the annual payroll close-down. This includes a final RTI submission marking the end of the year, production of P60 certificates for every employee, and the employer annual summary. For clients with benefits in kind, P11D filings are flagged — though P11D preparation itself is typically accountant territory.
What a payroll bureau does not do
A payroll bureau is a payroll specialist, not a general accountancy practice. It handles PAYE, NI, RTI, pension payroll and CIS. It does not prepare statutory accounts, file corporation tax returns, provide tax planning advice, prepare VAT returns or advise on director dividend strategy. Those services sit with the client's accountant.
This specialisation is a feature, not a limitation. A bureau that does only payroll does it at a higher standard than a general practice that treats payroll as one of many services.
How the bureau and accountant work together
Most small businesses use both. The accountant handles year-end accounts, corporation tax and strategic tax advice. The bureau handles monthly payroll. The two work in parallel, occasionally exchanging data — payroll journals for the accountant's bookkeeping, P60 copies at year end.
Some accountants refer their payroll clients to a bureau when payroll volume grows beyond what the practice wants to handle internally. The bureau delivers the service; the accountant retains the client relationship.
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A payroll bureau manages the full monthly payroll process on behalf of a business. This includes collecting payroll data, calculating PAYE, NI and pension deductions, producing payslips, submitting RTI to HMRC on or before each payday, managing starters and leavers, and providing a monthly employer payroll summary with the PAYE payment figure due to HMRC.
Payroll software is a tool the business owner operates. A payroll bureau is a managed service — the bureau owns the monthly process and delivers the output. With software, the business does the work. With a bureau, the bureau does the work.
Yes. Payroll bureaus serve businesses of all sizes, from single-director companies to firms with 100+ employees. Many small businesses find a bureau more cost-effective than software once the owner's time is factored in. Bookd serves businesses with 1–25 employees as standard.
RTI (Real Time Information) is HMRC's requirement that employers submit a Full Payment Submission on or before each payday. A managed payroll bureau handles this as part of the standard monthly process. The bureau files RTI, not the client. The client receives confirmation that the submission was made.
A payroll bureau handles payroll compliance — PAYE, NI, RTI, pension payroll, P60s. An accountant handles accounts, tax returns and year-end financial statements. These are complementary services. Many small businesses use both: a bureau for monthly payroll and an accountant for year-end. Some accountants refer payroll clients to bureaus.
Most bureaus request data by email or WhatsApp. The business sends any changes — new starters, leavers, pay changes, bonuses, sick pay — and the bureau processes from there. If there are no changes, many clients simply confirm by message that the previous month's figures repeat. Data collection typically takes the business owner under ten minutes.