Payroll and Employee Services

We offer a tailored payroll service to businesses of any size, any industry, and situated anywhere within the UK. With 50 years of payroll-providing experience to over 1,500 employers, in a wide range of sectors, we understand that one size doesn’t fit all.

We recognise how critical it is that employees are paid correctly and on time, and that accurate data is submitted to HMRC, that’s why our goal is to ensure you stay on top of legislation, whilst removing the time and costs associated with payroll processing.

With an in-house Employment Tax team, we can support and advise you on employment taxes, staff reward and pay governance, and can help with a wide range of pay-related issues including contingent workers, salary sacrifice, Benefits In Kind, National Minimum Wage and Construction Industry Scheme matters, to name a few.  We also have an in-house financial planning team who can offer support in respect of pensions, whether looking to open a new scheme, if new as an employer, or seeking a review to see if what you have in place is the best for your company and your employees.

Free forecasting tool - How much will your wage bill increase from April 2026?

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. 

Before using the tool, please ensure you read the following disclaimer document.

Download free forecasting tool

Supporting your payroll needs

We will prepare your UK payroll for each payroll period to meet UK employment legislation requirements. These include:

  • Payments – all salary/wages and other pay components
  • Deductions – all voluntary and statutory deductions
  • Reporting – all statutory HMRC reporting e.g., Real Time Information (RTI)
  • Pensions – full auto-enrolment compliance, including communications and upload of pension data to pension providers.

Areas of expertise

We consistently support our clients through accurate, timely and compliant payroll services, providing peace of mind and building lasting relationships. Just some of the areas we specialise in are as follows:

  • Teacher’s pension returns
  • Apprenticeship levy obligations
  • Gender Pay Gap information
  • Company payroll data reports; tailored where required
  • Company sick pay and maternity pay schemes where system supports rules
  • Payrolling of benefits in kind and Class 1A reports
  • Employee reports e.g., payslips, P45s and P60s

Employment Allowance claims (de-Minimis aid from 2020) where applicable

Learn more about Payroll Outsourcing - Download Payroll Outsourcing Guide.

An award-winning payroll team

If you’re looking for a technology-driven payroll service that’s award-winning, then Armstrong Watson Payroll Services is for you.

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.

Our Head of Payroll, and Chartered Member of the CIPP, Karen Thomson, has more than 30 years of experience, and is a stakeholder on several government and professional body forums including; HMRC’s Administrative Burdens Advisory Board (ABAB), HMRC’s Employment and Payroll Group, Vice Chair on Cumbria’s Local Government Pension Board, and Involvement with the Chartered Institute of Payroll Professionals (CIPP), Chartered Institute of Taxation, and Institute of Chartered Accountants for Scotland, to name but a few.

From farming to schools, manufacturing to professional services, with payrolls for just one employee, to those with hundreds of employees, our team can deal with any pay frequency, industry or size, offering you all the flexibility you need.

   

Call NOW to speak to one of our Payroll specialists

Call: 0808 144 5575

Matt Nicholls

Business Development Manager - Payroll

Karen Thomson

Head of Payroll - Partner

FAQs for UK employers

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.

What our clients say