Payroll is one of the most important responsibilities for any small business with employees. It is not only about paying people on time. It also means staying compliant with HMRC, applying the correct tax codes, reporting pay through Real Time Information, and keeping accurate records.
For 2026/27, employers should check that payroll systems reflect the latest rates and thresholds. The National Living Wage is £12.71 per hour for workers aged 21 and over from April 2026, with updated rates also applying for younger workers and apprentices.
Small employers should also review whether they can claim Employment Allowance, which can reduce eligible employers’ Class 1 National Insurance liability by up to £10,500 for 2026/27.
Key payroll essentials include:
- Maintaining accurate employee records
- Applying the correct tax codes
- Reporting payroll to HMRC on time
- Checking minimum wage compliance
- Managing pensions and auto-enrolment duties
- Keeping records of pay, deductions, holidays and statutory payments
Payroll mistakes can lead to penalties, unhappy employees and unnecessary admin. For small business owners, outsourcing payroll can save time and reduce stress, especially as rules and rates change each tax year.
At North Devon Accounts, we help small businesses manage payroll accurately and efficiently, giving business owners more time to focus on running their business.
Need help with payroll? Contact us for friendly, practical support with your small business payroll. It’s as easy as clicking the button below to send us an email to get started.
