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2026 FAMILY, PRIVATELY OWNED AND OWNER-MANAGED BUSINESS SURVEY

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Education

Payroll & Pension Services

Managing the complexity of education payroll

Payroll in the education sector is uniquely complex, driven by varied pay scales, term-time-only contracts, and the administrative intensity of the Teachers’ Pension Scheme (TPS) and Local Government Pension Scheme (LGPS). Errors in payroll don't just affect staff morale; they can lead to significant compliance failures with HMRC and pension regulators.

Armstrong Watson provides a fully managed, outsourced payroll service tailored specifically for MATs, academies, and schools. We remove the "key person risk" from your central team, ensuring your staff are paid accurately and your pension obligations are met without fail.

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Pension administration: TPS and LGPS

The most common cause of audit failure in education is pension data. We handle the technical heavy lifting:

MDC and MCR reporting

Managing the Monthly Data Collection or Monthly Contribution Reconciliation for Teachers' Pensions.

Year-end certificates

We ensure that your End of Year Certificate (EOYC) is reconciled and ready for audit, preventing the "late filing" flags that attract ESFA attention.

LGPS management

Handling the diverse reporting requirements of different local authority pension funds across your trust.

Specialist contract support

Education payroll isn't just about the monthly pay run; it’s about understanding the sector’s unique employment law:

Term-Time-Only (TTO) Calculations

Applying the latest rulings (e.g., Harper Trust v Brazel) to ensure holiday pay is calculated correctly for support staff.

Salary scales

Automating the transition of staff through the national and local pay scales, including performance-related pay awards.

Independent sector specifics

We advise Independent Schools on the financial implications of withdrawing from the TPS and setting up alternative, defined-contribution workplace pensions.

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Get in touch to speak to one of our specialist advisers and explore how we can help you.

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