Payroll services Reading
Running payroll accurately and on time is one of the most important obligations an employer has. Get it wrong and the consequences range from unhappy employees to HMRC penalties and compliance issues that take significant time and money to resolve. At Asmat & Co Accountants, we provide professional payroll services in Reading for businesses of all sizes, handling everything from monthly payslips and PAYE submissions to auto-enrolment pension management and year-end reporting.
Our experienced payroll team manages the full cycle of employer payroll obligations so you can focus on running your business, confident that your employees are paid correctly, on time, every time.
What payroll management involves
Payroll is far more than simply calculating how much to pay your employees each month. It is a complex, ongoing compliance process that touches income tax, National Insurance, pension contributions, statutory payments, and real-time reporting to HMRC. For businesses providing payroll services for business in Reading, the obligations include:
- Calculating gross pay including salary, overtime, bonuses, and commission
- Deducting employee Income Tax through PAYE in line with each employee’s tax code
- Deducting employee National Insurance contributions at the correct rate
- Calculating and paying employer National Insurance contributions to HMRC
- Processing workplace pension deductions and employer contributions under auto-enrolment
- Handling statutory payments such as Statutory Sick Pay (SSP), Statutory Maternity Pay (SMP), and Statutory Paternity Pay (SPP)
- Processing student loan deductions where applicable
- Submitting a Full Payment Submission (FPS) to HMRC via Real Time Information (RTI) on or before each payday
- Producing payslips for every employee
- Managing starters and leavers, including P45s and starter checklists
- Producing P60s for all employees by 31 May each year
- Reporting benefits in kind via P11D or, increasingly, through payroll
Missing any of these steps or making errors in your calculations can lead to HMRC enquiries, employee disputes, or automatic penalties. Our payroll team handles every element so you do not have to.
Company payroll services Reading: PAYE and National Insurance explained
PAYE (Pay As You Earn) is the system through which employers deduct Income Tax and National Insurance from employees’ wages before paying them. As an employer operating company payroll services in Reading, you are responsible for deducting the right amounts, paying them to HMRC on time, and keeping accurate records.
Income Tax through PAYE
The amount of Income Tax deducted from each employee’s pay depends on their tax code, which HMRC issues. For the 2025/26 tax year, the standard Personal Allowance is £12,570. Earnings above this threshold are subject to Income Tax at 20% up to £50,270, then at 40% up to £125,140, and at 45% above £125,140. Scottish taxpayers have different rates set by the Scottish Government.
Employees with non-standard situations, such as those with a second job, company benefits, or untaxed income, may have different tax codes. We ensure the correct code is applied to every employee and update codes promptly when HMRC issues new instructions.
National Insurance contributions
Employers deduct employee National Insurance (Class 1 primary contributions) from employees’ wages and pay employer National Insurance (Class 1 secondary contributions) directly to HMRC on top of the wage cost. For 2025/26, the employer NI rate is 15% on all employee earnings above the Secondary Threshold of £5,000 per year. The April 2025 budget changes significantly reduced the Secondary Threshold from its previous level of £9,100, increasing the NI cost for most employers. We ensure your employer NI is calculated correctly each period and that the right amount is paid to HMRC on time.
Our payroll services in Reading
Asmat & Co provides a complete, end-to-end payroll service in Reading that covers every aspect of your employer obligations. We tailor our service to the size and needs of your business, whether you have one employee or a hundred.
Monthly and weekly payroll processing
We calculate pay accurately for every employee on your payroll, applying the correct tax code, National Insurance category, and any applicable deductions. We produce payslips in a clear, professional format and deliver them to your employees digitally or in whatever format you prefer.
PAYE and RTI submissions
Every pay period, we submit your Full Payment Submission to HMRC via Real Time Information as required. We also file Employer Payment Summaries where applicable, ensuring your PAYE records are always up to date and compliant.
Auto-enrolment pension management
We manage your workplace pension auto-enrolment obligations, including assessing employee eligibility each pay period, calculating and deducting employee contributions, calculating and reporting employer contributions, and communicating with your pension provider. We also handle re-enrolment, which must be carried out every three years.
New starters and leavers
We process new employees onto your payroll using the information from their P45 or starter checklist, and we issue P45s promptly when employees leave. All changes are reflected in your next FPS submission to HMRC without delay.
Statutory payments
We calculate and process Statutory Sick Pay, Statutory Maternity Pay, Statutory Paternity Pay, Shared Parental Pay, and other statutory payments correctly, and advise you on any entitlement to reclaim these costs from HMRC where applicable.
Year-end payroll reporting
At the end of each tax year, we produce P60s for all employees, file your P11D returns for benefits in kind with HMRC by the 6 July deadline, and ensure your payroll records are closed off correctly. We also advise on preparing for the following tax year, including any changes to rates, thresholds, or software requirements.
Workplace pension auto-enrolment: your ongoing obligations
Since auto-enrolment was phased in from 2012, all UK employers have been legally required to automatically enrol eligible workers into a qualifying workplace pension scheme and make minimum contributions. This is an ongoing obligation that applies every pay period, not just when you first set up your scheme.
An eligible worker is one who is aged between 22 and state pension age and earns more than £10,000 per year (the auto-enrolment earnings trigger for 2025/26). Employees who earn between £6,240 and £10,000 (the lower threshold) are entitled to opt in if they wish, and you must still enrol them if they do.
The minimum contribution requirements for 2025/26 are:
- Employer minimum contribution: 3% of qualifying earnings
- Employee minimum contribution: 5% of qualifying earnings
- Total minimum contribution: 8% of qualifying earnings
Qualifying earnings for 2025/26 are calculated on the band between £6,240 and £50,270 per year. Many employers choose to base contributions on total gross salary rather than qualifying earnings, which is more generous than the legal minimum.
In addition to the monthly assessment and contribution process, employers must carry out a formal re-enrolment of any employees who have opted out every three years. We manage this process for all our payroll clients so that re-enrolment is never missed.
Trust the professionals with your numbers
Current payroll rates and thresholds for 2025/26
The following rates and thresholds apply for the 2025/26 tax year (6 April 2025 to 5 April 2026). We ensure these are applied correctly in every payroll run we process.
| Threshold / rate (2025/26) | Amount |
|---|---|
| Personal Allowance | £12,570 per year |
| Employee NI (Class 1 primary) rate | 8% on earnings between £12,570 and £50,270 |
| Employer NI (Class 1 secondary) rate | 15% on earnings above the Secondary Threshold |
| Employer NI Secondary Threshold | £5,000 per year (£96 per week / £417 per month) |
| Employment Allowance | Up to £10,500 per tax year (most employers) |
| Auto-enrolment earnings trigger | £10,000 per year |
| Qualifying earnings band | £6,240 to £50,270 per year |
| Minimum employer pension contribution | 3% of qualifying earnings |
| Minimum total pension contribution | 8% of qualifying earnings (employer + employee) |
National minimum wage and National Living Wage rates
All employers must pay at least the applicable minimum wage rate. Note that the National Living Wage applies to all workers aged 21 and over from April 2025, having been extended from the previous age threshold of 23. Wage rates change on 1 April each year, which is three weeks before the new tax year begins. It is important not to confuse the two dates.
| Category | Rate from April 2025 | Rate from April 2026 |
|---|---|---|
| National Living Wage (age 21 and over) | £12.21 per hour | £12.60 per hour |
| National Minimum Wage (age 18 to 20) | £10.18 per hour | To be confirmed |
| National Minimum Wage (under 18) | £7.55 per hour | To be confirmed |
| Apprentice rate | £7.55 per hour | To be confirmed |
Paying below the minimum wage rate is a criminal offence. HMRC actively enforces compliance and can require employers to pay arrears of up to six years. We check minimum wage compliance for all our payroll clients as part of our standard service.
Payroll deadlines you must not miss
HMRC imposes strict deadlines on payroll reporting and payment. Missing them results in automatic penalties and interest charges. These are the key dates every employer needs to manage:
| Obligation | Deadline |
|---|---|
| Full Payment Submission (FPS) via RTI | On or before each payday |
| Employer Payment Summary (EPS) | By 19th of the following tax month if no FPS sent |
| PAYE and NI payment to HMRC (electronic) | 22nd of the month following the tax month |
| PAYE and NI payment to HMRC (postal cheque) | 19th of the month following the tax month |
| P60 issued to all employees | By 31 May following the end of the tax year |
| P11D benefits in kind filing with HMRC | By 6 July following the end of the tax year |
| Class 1A NI payment to HMRC (electronic) | By 22 July following the end of the tax year |
| Mandatory payrolling of benefits in kind | From April 2027 (plan ahead now) |
One upcoming change worth noting is mandatory payrolling of benefits in kind, which is expected to become compulsory from April 2027. This will require employers to report and tax most benefits through payroll in real time, rather than via the P11D process. We are already helping clients prepare for this change. If you provide company cars, health insurance, or other benefits to employees, now is a good time to review how these are reported.
Payroll services for different types of businesses in Reading
Small and growing businesses
For small businesses hiring their first employees, payroll compliance can feel overwhelming. We set up your PAYE scheme with HMRC, register your pension with an auto-enrolment provider, and take over the full payroll cycle from day one. You receive payslips, payment schedules, and payroll reports each period, and we manage all your HMRC submissions and payments.
Limited companies and director payrolls
Company directors have unique payroll considerations, including the annual earnings period calculation for National Insurance and the importance of setting the optimal salary level to minimise tax and NI while preserving State Pension entitlement. We advise all our director clients on the most tax-efficient approach to their own remuneration and manage their payroll accordingly.
Multi-employee businesses
Businesses with larger teams face more complex payroll challenges, including varied pay frequencies, starters and leavers, apprenticeship levy obligations (for payroll bills exceeding £3 million), and potentially multiple pension schemes. Our payroll team has the capacity and systems to manage payrolls of any size accurately and to deadline.
Businesses with seasonal or variable workforces
Retailers, hospitality businesses, and others with seasonal staffing requirements need a payroll service that can scale quickly and handle variable headcount without delays or errors. We are experienced in processing payrolls with fluctuating employee numbers and can accommodate changes at short notice.
Trust the professionals with your numbers
Payroll accountants Reading: why professional payroll matters
Many businesses attempt to run their payroll in-house using software, only to encounter problems with incorrect tax codes, missed deadlines, auto-enrolment errors, or HMRC queries they are not equipped to handle. Our payroll accountants in Reading bring the expertise and systems to avoid these issues from the outset.
Accuracy and compliance
Payroll errors are costly. An incorrect tax code, a missed NI deduction, or a late FPS submission can trigger HMRC correspondence, employee dissatisfaction, and in some cases penalties. Our team checks every payroll run for accuracy before processing and resolves any discrepancies before they become problems.
Up-to-date knowledge
Payroll legislation changes regularly. The April 2025 changes to employer NI rates and thresholds, the annual minimum wage updates, and the upcoming mandatory payrolling of benefits in kind from April 2027 are all examples of the changes employers need to track. Our payroll accountants in Reading stay current with all legislative updates so your payroll is always processed using the correct rates and rules.
Time savings
Processing payroll in-house takes time, particularly at month end when other deadlines are also pressing. Outsourcing to a professional payroll service in Reading frees up your time to focus on your business, while giving you confidence that the payroll is being handled by experts.
Confidentiality
Salary information is sensitive data. Outsourcing payroll to a trusted professional accountant ensures that employee pay details are handled with complete confidentiality and managed in accordance with data protection requirements.
Payroll management services Reading: a complete solution
Our payroll management services in Reading cover every stage of the employer payroll cycle, from setup through to year-end, for businesses of all sizes. We offer payroll services for business in Reading on a fully outsourced basis, meaning you hand over the entire payroll function to us and we manage it completely on your behalf.
Our payroll management service is available on a monthly, four-weekly, or weekly basis to suit your pay cycle. We provide each client with a dedicated payroll contact, so you always deal with someone who knows your payroll and can answer your questions quickly.
Our payroll management service includes everything you need as a UK employer:
- Full payroll processing for all employees on your schedule
- PAYE calculations including all deductions and employer contributions
- RTI submissions to HMRC on or before each payday
- Auto-enrolment assessment, contribution calculation, and pension reporting
- Management of starters, leavers, P45s, and starter checklists
- Statutory payment calculations including SSP, SMP, and SPP
- Employment Allowance claim and management
- Student loan deduction processing
- Monthly payroll reports for your records
- Year-end P60 production and P11D filing
- Â Liaison with HMRC on your behalf for any payroll queries or discrepancies
Frequently asked questions
How much do payroll services in Reading cost?
The cost of outsourced payroll services depends on the number of employees on your payroll, the pay frequency, and the complexity of your payroll requirements. At Asmat & Co, we offer fixed-fee payroll packages agreed before we begin, so there are no surprise charges. Most small to medium-sized businesses find that the cost of professional payroll is far less than the time and risk involved in managing it in-house. Contact us for a free, no-obligation quote based on your specific requirements.
What are payroll management services and why do businesses use them?
Payroll management services cover the full cycle of employer payroll obligations, from calculating pay and deductions to submitting RTI reports to HMRC, managing pension auto-enrolment, and producing year-end documents. Businesses use professional payroll management services in Reading to save time, reduce the risk of errors and penalties, ensure compliance with HMRC requirements, and free up internal resource. For many businesses, especially those without a dedicated HR or finance function, outsourcing payroll is the most efficient and cost-effective solution.
What does company payroll services in Reading include?
Our company payroll services in Reading include payslip production, PAYE calculation, employee and employer National Insurance calculation, RTI submissions to HMRC, auto-enrolment pension management, management of starters and leavers, statutory payment calculations, Employment Allowance claims, P60 production at year end, and P11D filing for benefits in kind. We manage the entire process end to end, so you do not need to worry about any individual element of payroll compliance.
Do I need payroll services for my business in Reading if I only have one employee?
Yes. As soon as you employ even one person, you have the full range of employer payroll obligations, including registering as an employer with HMRC, operating PAYE, submitting RTI reports, managing auto-enrolment, and producing a P60 at year end. These obligations apply regardless of how many employees you have. Many of our clients come to us when they take on their first employee and find the compliance requirements more complex than expected. We set everything up correctly from the start, saving them time and preventing the errors that commonly occur when employers try to manage payroll for the first time.
What is the employer National Insurance rate for 2025/26?
For the 2025/26 tax year (6 April 2025 to 5 April 2026), employers pay National Insurance at 15% on employee earnings above the Secondary Threshold of £5,000 per year (equivalent to £96 per week or £417 per month). This represents a significant change from 2024/25, when the rate was 13.8% and the threshold was £9,100 per year. The reduction in the Secondary Threshold means employers now start paying National Insurance on employee earnings much earlier in the year. Most eligible employers can reduce their NI bill by up to £10,500 per year through the Employment Allowance.
How does auto-enrolment work and what are my obligations as an employer?
Workplace pension auto-enrolment requires you to automatically enrol all eligible workers into a qualifying pension scheme and make minimum contributions each pay period. Eligible workers are those aged 22 to state pension age who earn more than £10,000 per year. The minimum employer contribution is 3% of qualifying earnings and the minimum total contribution is 8%. You must also carry out a formal re-enrolment every three years for any employees who have opted out. Failure to comply with auto-enrolment obligations can result in penalties from The Pensions Regulator. We manage the full auto-enrolment process for all our payroll clients, including the triennial re-enrolment.
Do I need payroll accountants in Reading or can I use payroll software myself?
Payroll software can help you process payroll, but it does not replace the knowledge and judgement of qualified payroll accountants. Software will not tell you when a tax code is wrong, flag a compliance issue with your auto-enrolment setup, or advise you on the most tax-efficient salary structure for a director. It also requires someone with payroll knowledge to operate correctly and to handle the exceptions and edge cases that arise in practice, such as statutory payments, leavers mid-period, and RTI corrections. Our payroll accountants in Reading provide the expertise behind the process, ensuring your payroll is not only processed but managed correctly throughout the year.
What is the National Living Wage for 2025/26?
From April 2025, the National Living Wage for workers aged 21 and over is £12.21 per hour, up from £11.44 in the previous year. The National Minimum Wage for workers aged 18 to 20 is £10.18 per hour, and the rate for those under 18 and apprentices in their first year is £7.55 per hour. From April 2026, the National Living Wage increases to £12.60 per hour for workers aged 21 and over. Note that minimum wage rates change on 1 April each year, three weeks before the start of the new tax year. All employees must be paid at least the applicable minimum rate, and HMRC actively enforces compliance.
