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Payroll and employee services

Accurate - Compliant - On time

Armstrong Watson delivers fully managed payroll and employee services for organisations of every size and sector. With 50 years of experience supporting 1,500+ employers, we combine specialist expertise, secure technology and proactive advice to take payroll admin and compliance risk off your plate.

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Why businesses choose Armstrong Watson

  • End-to-end payroll: processing payslips, RTI submissions, statutory reporting and year-end.
  • Compliance-first: up-to-date with HMRC, The Pensions Regulator and employment law.
  • Sector expertise: education (incl. Teacher’s Pension Scheme), construction (incl. CIS), manufacturing, agriculture, healthcare, professional services, charities and more.
  • Scalable & secure: from 1 to 1000+ employees, any pay frequency.
  • Integrated advice: access to in-house employment tax specialists and chartered financial planners.

What our payroll service includes

Payroll processing

  • Gross-to-net calculations for salaries, overtime, bonuses and commissions.
  • Voluntary & statutory deductions (PAYE, NICs, student loans, AEOs)
  • Secure e-payslips, P45s and P60s.
  • Tailored management reports by cost centre, department, location.

HMRC reporting & year end

  • Real Time Information (RTI) – FPS/EPS on or before payday.
  • Year-end P60s; P11D(b) for class 1A NIC where applicable.

Workplace pensions & auto-enrolment

Full auto-enrolment compliance: assess workforce each pay period, enrol eligible staff, manage opt-ins/opt-outs, statutory communications; re-enrolment every three years, and upload of contributions to your provider.

Specialist areas (as needed)

  • Teacher’s Pension Scheme returns
  • Apprenticeship Levy calculation and EPS reporting
  • Gender Pay Gap data support (for 250+ employees)
  • CIS payroll and deductions
  • Payrolling benefits in kind and Class 1A reporting (including transition to HMRC’s mandatory payrolling of BiKs from April 2027

Need joined-up advice? Our in-house employment tax team advises on salary sacrifice, benefits-in-kind, pay governance and compliance. Our financial planning team reviews or sets up workplace pension schemes aligned to your reward strategy.

CIPP logo

Key contact

Karen Thomson, Head of Payroll - Partner

Karen Thomson

Head of Payroll - Partner

Contact Karen

Recent news stories

Small business meeting

15th April 2026

Rising employment costs: how UK businesses can protect margins without losing talent

employment rights bill

13th April 2026

Employment rights reform: why preparation matters

highlighting piece of paper

2nd April 2026

New Statutory Sick Pay (SSP) rules and actions employers need to take

An award-winning payroll team

Our qualified payroll professionals are up to date with all current legislation surrounding payroll and automatic-enrolment, and will provide a smooth and pain-free payroll process for you and your employees.

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Payroll outsourcing guide

Our practical, jargon‑free guide that helps employers understand payroll outsourcing, avoid compliance risks and streamline their payroll processes.

Download

FAQs for UK employers

Employer-focused payroll help and answers

NLW is the legal minimum for ages 21+; NMW applies to under‑21s and apprentices. Both are set by the UK Government and updated each 1 April. The Real Living Wage is voluntary, not a legal minimum.

From 1 April 2025

  • NLW (age 21+): £12.21 per hour
  • NMW 18–20: £10.00 per hour
  • NMW under 18: £7.55 per hour
  • Apprentice rate: £7.55 per hour

From 1 April 2026

  • NLW (age 21+): £12.71 per hour
  • NMW 18–20: £10.85 per hour
  • NMW under 18: £8.00 per hour
  • Apprentice rate: £8.00 per hour

(Rates are reviewed every April. You can always check the latest on GOV.UK’s official page.)

Most workers are entitled to 5.6 weeks paid holiday per year (pro‑rated for part‑time). 

Holiday pay for fixed hours = a week’s normal pay; for shifts = average weekly hours in the last 52 weeks; for irregular/zero‑hours = average pay over 52 paid weeks (look back up to 104 weeks to find 52 paid weeks). 

(You can use the holiday calculator to work out how much leave someone should get.)

2025/26 SSP: £118.75/week for up to 28 weeks, subject to eligibility. [gov.uk]

From 6 April 2026 (Employment Rights Act 2025): waiting days removed and Lower Earnings Limit removed; SSP becomes day‑one and payable at the lower of the flat rate (expected ~£123.25) or 80% of earnings for lower earners.

For 2025/26: SMP/SAP/ShPP/SPP main weekly rate £187.18 (after first 6 weeks at 90% AWE), or 90% average weekly earnings if lower.

Yes, but only the employee can opt out via the pension provider’s process. Employers must not induce opt‑outs and must complete a Declaration of Compliance with The Pensions Regulator. Re‑enrolment is required roughly every three years.

2025/26 thresholds: Plan 1 £26,065, Plan 2 £28,470, Plan 4 £32,745, Plan 5 £25,000 (repayments start April 2026), Postgraduate (Plan 3) £21,000. Deductions: 9% over threshold (plans 1/2/4/5) and 6% for Postgraduate. 

2026/27 (from Apr 2026) confirmed thresholds: Plan 1 £26,900, Plan 2 £29,385, Plan 4 £33,795, Plan 5 £25,000.

You don’t have to pay, but many employers top up or continue pay; employees can claim a loss of earnings allowance from the court and will need an employer certificate of loss of earnings.

Based on age and full years of service (½, 1, or 1½ weeks per qualifying year), capped at 20 years.

For redundancies on/after 6 April 2025: weekly pay cap £719; max statutory redundancy £21,570.

You can payroll benefits so tax is collected in real time; employers still account for Class 1A NICs. HMRC will mandate payrolling of most BiKs from April 2027, largely removing P11D forms. Plan your data and software now.

Tax codes are adjusted by HMRC to reflect changes in allowances and taxable benefits, job changes, or multiple employments, our RTI submissions help HMRC keep records current.

Cash bonuses are taxed like salary (PAYE/NICs); non‑cash awards and share plans can have different tax/NIC treatments—speak to our Employment Tax specialists for structuring advice.

Armstrong Watson has developed a wage forecasting tool to assist businesses in estimating their employer wage bill. This includes the increases in National Living/Minimum Wage Rates from April 2026, along with National Insurance contributions.

This free tool, created by our payroll service line and IT team, is designed to be user-friendly, however it does make several assumptions to simplify its use. 

Download free forecasting tool

Contact our payroll team

Your payroll is handled by CIPP-accredited professionals using robust, secure systems. Our Head of Payroll, Karen Thomson MScIPP, brings over 30+ years’ experience and contributes to national payroll policy via HMRC and industry forums, keeping you ahead of change.

Karen Thomson

Head of Payroll - Partner

Matt Nicholls

Business Development Manager - Payroll

Get in touch

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

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Latest news

Small business meeting

Rising employment costs: how UK businesses can protect margins without losing talent

by Craig Reid - 15th April 2026

employment rights bill

Employment rights reform: why preparation matters

by Karen Thomson - 13th April 2026

highlighting piece of paper

New Statutory Sick Pay (SSP) rules and actions employers need to take

by Karen Thomson - 2nd April 2026

Reminder: Employer P11D Returns/Reminder to employers to report benefits in kind

by Brian Rudkin - 19th March 2026

HMRC compliance

How HMRC’s approach to compliance is changing in 2026

by Brian Rudkin - 19th March 2026