info@mcrock.co.uk

Follow us:

Payroll Tax Services

Seamless Payroll Tax Compliance for UK Businesses of All Sizes
From PAYE registration and RTI submissions to tax code management, HMRC reporting, and staff pension schemes — McRock Berkeley delivers end-to-end payroll tax services that ensure your employees are paid accurately and your business remains fully compliant.

Payroll tax in the United Kingdom encompasses a range of statutory obligations that employers must fulfil when paying employees, contractors, or company directors. The primary components of payroll tax include Income Tax deductions through the Pay As You Earn (PAYE) system and National Insurance Contributions (NICs), both of which are withheld from employees’ wages and reported to HM Revenue & Customs (HMRC) in real-time. Employers are also responsible for contributing additional NICs on behalf of their staff, as well as ensuring compliance with statutory pay requirements such as Statutory Sick Pay (SSP), Statutory Maternity Pay (SMP), and other leave entitlements. Payroll tax obligations further extend to workplace pension enrolment under The Pensions Regulator’s auto-enrolment rules, where eligible employees must be enrolled into a qualifying pension scheme with contributions made by both employer and employee.

Additionally, employers may need to report non-cash benefits and expenses via annual P11D forms, where benefits-in-kind such as company cars or private medical insurance are subject to Class 1A NIC. For businesses operating within the Construction Industry Scheme (CIS), a separate set of payroll obligations exists, including the verification and taxation of subcontractor payments. The entire payroll tax process is governed by strict timelines and reporting requirements under HMRC’s Real-Time Information (RTI) system. Failure to comply with these duties can result in penalties, interest charges, and reputational risk. Due to its complexity and the frequency of legislative updates, payroll tax is a critical area of compliance for all employers operating in the UK.

Who We Help With Payroll Tax

• Guidance through initial PAYE setup and RTI compliance

• Building payroll systems from the ground up

• Monthly, weekly, or fortnightly payroll processing

• Tax code updates, bonus payments, and statutory leave handling

• Overseas companies employing UK-based workers

• UK payroll registration, processing, and tax compliance

• Umbrella firms and contractor-based businesses

• Payroll tax compliance across multiple employment models

• Businesses with on-site, part-time, or mobile workers

• Complex scheduling and pension enrolment support

• Payroll for high-turnover and seasonal staff

• Real-time processing for variable hours and holiday pay

• CIS and PAYE side-by-side processing

• Subcontractor verifications and tax deduction submissions

• Payroll for fee earners and partners

• Director tax planning and dividend vs salary structuring

Why Choose Us

McRock Berkeley is not just a tax agent — we are a strategic VAT partner for businesses that want clarity, compliance, and commercial advantage.

From registration to monthly filings and advanced planning — we handle every aspect of VAT so you can focus on your business.

We advise proactively, identifying opportunities for savings, structuring, and risk reduction before problems arise.

Our consultants understand VAT within the context of your sector — including retail, construction, digital, finance, property, and healthcare.

One of the trickiest areas of VAT — we build precise models to maximise recovery and defend them in case of HMRC review.

From EU VAT structuring to imports, exports, and non-resident registration — we help you navigate global VAT with confidence.

We integrate your accounting software with HMRC systems and train your team to stay compliant in a digital-first tax environment.

We manage complex commercial/residential VAT issues, zero-rating, option-to-tax registrations, and VAT-SDLT overlap matters.

We assist developers and trades in applying the Domestic Reverse Charge correctly, avoiding the costly cash flow and penalty pitfalls.

Our consultants represent your interests in front of HMRC — from negotiating penalty reductions to responding to VAT assessments.

We offer fixed-fee pricing for startups, SMEs, and large firms — with scalable support that grows as your business does.

Whether you use Sage, Xero, Zoho, or another platform, we work directly with your internal finance staff to streamline VAT processing and reduce admin overhead.

We assist new employers and expanding businesses with complete PAYE registration, handling all correspondence with HMRC. This includes:

Registering for PAYE schemes and employer references

Setting up your online HMRC employer portal

Linking employer PAYE schemes with your accounting or payroll systems

Ensuring tax codes and starter forms are in place for first payments

For international businesses with UK-based staff, we also guide non-resident employers through the special compliance steps required for UK payroll.

We manage the end-to-end payroll cycle tailored to your pay frequency — weekly, bi-weekly, or monthly. This includes:

Calculating gross-to-net pay for all employees

Applying overtime, bonuses, deductions, and holiday pay

Generating secure payslips with clear itemisation

Creating full payroll journals for your finance systems

Managing staff leavers, joiners, and mid-period changes

We also customise department or site-level payroll reports for businesses with multiple branches or cost centres.

Our Value Added Tax Services

RTI Submission & HMRC Reporting

Every payroll run includes accurate and timely real-time submissions to HMRC. This involves:

  • Full Payment Submissions (FPS) for every pay period
  • Employer Payment Summaries (EPS) to report adjustments or statutory pay
  • Tax code updates and student loan thresholds
  • Annual year-end filing and P60 generation for staff

We ensure that all reporting is HMRC-compliant and that your deadlines are met without penalty.

National Insurance & Tax Deductions

We apply current PAYE and NIC thresholds across all employee types. This includes:

  • Applying tax codes and automatic updates from HMRC
  • Calculating Class 1 NIC for employees and employers
  • Managing Class 1A for benefits-in-kind and directors’ NIC schedules
  • Tracking thresholds and applying secondary NIC relief (e.g. Employment Allowance)

Our system handles all earnings types, ensuring deductions are compliant and accurately reflected in monthly liabilities.

Auto-Enrolment & Pension Compliance

We take full control of your pension responsibilities, ensuring you meet all obligations under The Pensions Regulator. This includes:

  • Initial employee assessment and classification
  • Issuing statutory pension communications
  • Auto-enrolment and opt-out tracking
  • Integration with Nest, People’s Pension, and other providers
  • Re-enrolment every three years and compliance reporting

Our process is fully documented to support audit trails and TPR inspections.

P11D & Benefits-in-Kind

If you provide non-cash perks to your employees, McRock Berkeley prepares and submits your P11Ds and P11D(b) forms with precision. We support:

  • Company car benefit calculations and CO2 tracking
  • Reporting for private medical, accommodation, or loans
  • Grossing up Class 1A NIC where needed
  • Managing PAYE settlement agreements for trivial or irregular benefits

We also help plan future benefit packages to optimise tax efficiency for both employer and employee.

Statutory Pay & Absence Management

We administer all types of statutory leave pay with accuracy and HMRC-compliant calculation methods. This includes:

  • Statutory Sick Pay (SSP)
  • Statutory Maternity Pay (SMP)
  • Statutory Paternity Pay (SPP)
  • Shared Parental Pay (ShPP)
  • Statutory Adoption Pay (SAP)

We maintain detailed absence logs and ensure all staff are paid correctly during leave while ensuring employer cost relief where applicable.

Company Licensing in UK

We support businesses in the construction sector operating under both PAYE and CIS. Our services include:

  • Verifying subcontractors with HMRC before payment
  • Applying correct deduction rates (20%, 30%, or gross status)
  • Preparing and submitting monthly CIS returns
  • Issuing payment and deduction statements to subcontractors
  • Recording expenses and reconciliations for accounting purposes

We ensure your records are fully audit-ready and compliant with both tax and construction law.

Company Licensing in UK

If issues arise with PAYE payments or RTI submissions, McRock Berkeley manages all interaction with HMRC to resolve matters efficiently. We assist with:

  • Responding to underpayment or penalty notices
  • Reconciling discrepancies between payroll records and HMRC expectations
  • Arranging time-to-pay agreements if needed
  • Submitting revised or late RTI filings

We also guide you through HMRC reviews or inspections to ensure your business is protected and professionally represented.

Payroll Services

Complete setup of employer schemes, including HMRC registration, reference numbers, and tax office linkage.

Weekly, fortnightly, or monthly processing — including gross-to-net calculations, holiday pay, overtime, and bonus management.

Full RTI reporting to HMRC with every payroll run — including FPS (Full Payment Submission) and EPS (Employer Payment Summary).

Accurate application of NIC classes, tax codes, and thresholds — always updated with current legislation.

Compliance with The Pensions Regulator (TPR), including enrolment notices, re-enrolment, and ongoing contribution management.

Annual returns for benefits and expenses — such as cars, medical cover, or accommodation.

Accurate processing of statutory sick pay, maternity, paternity, shared parental leave, and adoption pay.

Support for Construction Industry Scheme (CIS) employers running both PAYE and subcontractor payments.

Handling all communication, reconciliations, and issue resolution directly with HMRC on your behalf.

Common Payroll Tax Mistakes We Help Fix

 Not registering with HMRC as a landlord
 Failing to report rental income (even if it’s a family let)
 Paying the higher SDLT rate unnecessarily
 Missing 60-day CGT reporting deadlines
 Not understanding difference between personal and company ownership
  Ignoring VAT implications on renovations or mixed-use properties
  Overlooking Inheritance Tax exposure on property assets

We don’t just fix problems — we future-proof your property tax position.

FAQs

1. Do I need to register for PAYE if I only have one employee?

Yes, as soon as you pay an employee above the LEL (£123/week in 2024–25) or provide them with benefits or a pension, PAYE registration is required. McRock Berkeley can set this up for you in under 48 hours.

2. What is RTI and why is it important?

Real-Time Information (RTI) is HMRC’s requirement to report payroll data every time employees are paid. It ensures accurate tax tracking. Late RTI filings may trigger penalties, which we help prevent.

3. Can I run payroll myself using accounting software?

Yes — but errors in tax codes, pensions, or deductions can result in penalties. Most small businesses prefer to outsource to experts like McRock Berkeley for peace of mind and guaranteed compliance.

4. How do I set up workplace pensions?

We register you with a qualifying provider like Nest or The People’s Pension, enrol eligible staff, and manage contributions and opt-outs. We also handle re-enrolment every three years.

5. Do directors pay tax differently on their salary?

Yes — directors’ NIC is calculated differently, often annually instead of per pay period. We structure salary/dividends efficiently for optimal tax treatment.

6. What happens if I pay employees late?

Late payments can damage morale, violate employment law, and trigger HMRC issues if RTI filings don’t match payment dates. We help avoid this with automated schedules and reminders.

7. What is a P11D and do I need one?

P11Ds are annual forms reporting benefits-in-kind (like cars, medical, etc.). If you offer these to staff, McRock Berkeley handles the full process and HMRC submission.

8. How is sick pay calculated?

Statutory Sick Pay (SSP) is based on average weekly earnings and qualifying days. We handle calculations, documentation, and apply offsetting in your monthly payments.

9. Can I claim employment allowance?

Yes — many businesses can reduce their employer NIC bill by up to £5,000 per year. We check eligibility and apply this automatically.

10. What is the difference between gross pay and net pay?

Gross pay is total before deductions; net pay is what employees take home. We clearly itemise this in every payslip and digital report.

11. What are my payroll responsibilities as a director with no staff?

If you pay yourself above the LEL, you still need a PAYE scheme. McRock Berkeley structures this efficiently, especially for sole directors in limited companies.

12. Do part-time employees get auto-enrolled in pensions?

Yes, if they meet eligibility (£10,000/year income and age 22–66). We manage notifications, tracking, and opt-outs for part-time staff.

13. Can you handle payroll for different departments or locations?

Yes — we support multi-branch or department-based payroll with separate cost centres, reporting, and access permissions.

14. What if I’ve made an error in a previous payroll run?

We can amend past RTI submissions, issue corrected payslips, and resolve over/underpayments — all with audit-ready records.

15. Do you offer fixed-fee payroll packages?

Absolutely. Whether you have 1 employee or 100, we offer flat-rate payroll services tailored to your pay frequency and business type.