Both options can work. The right choice depends on how much payroll knowledge, time and internal checking your business has—not simply how many employees you pay.
1. Using payroll software yourself
Running payroll internally gives direct control and may suit a simple, stable payroll when someone understands PAYE processes and has time for each pay run.
- You enter and check employee changes
- You approve figures and send submissions
- You manage software updates and payroll records
- You resolve errors and late changes
2. Using an outsourced payroll bureau
A bureau prepares the payroll to an agreed timetable, produces the outputs and completes the agreed reporting. The employer still supplies accurate information and approves the pay run.
3. Questions to compare properly
Compare the full service, not just the monthly figure.
- Are FPS and EPS submissions included?
- Are starters, leavers, P45s and P60s included?
- Is pension administration included or separate?
- What is the cut-off for changes?
- Who answers employee or director queries?
- How are corrections charged?
4. The deadline does not move
HMRC says an FPS should normally be sent on or before employees’ payday. Whichever route you choose, build enough review time into the process.
Official guidance
Tax and reporting rules can change. Check the current primary guidance before acting.
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Explore payroll services ↗This guide provides general information, not personal tax or employment advice. Your treatment and responsibilities depend on the complete facts and current rules.