Payroll Processing
Payroll processing services that are late, inaccurate, or non-compliant do not just frustrate your employees — they expose your business to HMRC penalties that are entirely avoidable. At Northlight, we take complete ownership of your payroll from start to finish, handling everything from PAYE tax calculations and National Insurance contributions to RTI submissions and auto enrolment pension compliance — accurately, on time, every time. Whether you are a small business running payroll for the first time or an established company looking for more reliable managed payroll services, we are ready to take it off your plate entirely.
Up to 60% Cost Savings
Dedicated Team
Secure Data Handling
On-time Delivery
Experienced Professionals
What Does Reliable Outsourced Payroll Support Actually Look Like for UK Businesses?
Most business owners do not struggle with payroll because they lack effort — they struggle because payroll is genuinely complex, time-consuming, and unforgiving when mistakes are made. A single error in a PAYE calculation, a missed RTI submission, or an auto enrolment oversight can trigger HMRC penalties, employee complaints, and hours of corrective work that pull you away from running your business.
Our outsourced payroll services are built to remove that burden completely. We act as your dedicated payroll team — handling every calculation, every submission, and every compliance requirement so your employees are paid correctly and on time without you having to manage any of it yourself.
Here is what our payroll processing support covers for every client we work with:
PAYE Payroll Services and Tax Calculations
We calculate every employee's income tax and National Insurance contributions accurately each pay period — taking into account tax codes, allowances, benefits in kind, and any mid-year changes to employment terms.
RTI Submissions to HMRC
Every pay run requires a Real Time Information submission to HMRC on or before your employees' payday. We handle every RTI submission on your behalf — accurately and without exception — so you are never at risk of late filing penalties.
Payslip Generation and Distribution
We prepare and distribute clear, accurate payslips to every employee each pay period — digitally or in your preferred format — giving your team confidence that their pay has been calculated correctly.
Auto Enrolment Pension Compliance
We manage your workplace pension obligations in full — calculating employer and employee contributions, enrolling eligible workers, handling opt-outs, and maintaining the records HMRC and The Pensions Regulator require.
Employee Payroll Management for Starters and Leavers
New starters, leavers, statutory payments, and mid-year changes are all handled correctly and reflected accurately in your payroll and your RTI submissions without delays or errors.
Statutory Pay Calculations
Statutory Sick Pay, Statutory Maternity Pay, Statutory Paternity Pay, and Shared Parental Leave — all calculated correctly, reported accurately, and reflected in your payroll without disrupting your normal pay run.
Year-End Payroll Processing
We handle your full year-end payroll process — including P60 preparation and distribution for all employees and P11D reporting for benefits in kind — ensuring your year-end submissions to HMRC are complete, accurate, and on time.
What Are the Core Values That Drive Every Payroll We Process for Our Clients?
Accuracy Without Compromise
Payroll errors affect real people — their rent, their bills, their trust in you as an employer. Every payroll we process is checked against current HMRC rates, employee records, and prior period figures before a single payslip is issued or an RTI submission is made.
Compliance as Standard
PAYE payroll services, RTI submissions, auto enrolment pension compliance, and year-end reporting all carry specific legal obligations. We treat every one of them with the same level of attention — because falling short on compliance is never a minor issue for your business.
Confidentiality You Can Rely On
Your payroll data is sensitive — for your business and for every individual on your payroll. We handle all payroll information with strict confidentiality, secure systems, and clearly defined data handling processes that give you and your employees complete peace of mind.
Consistency Every Pay Period
Your employees expect to be paid correctly and on time — every time. Our managed payroll services are built around consistent, reliable delivery that your team can depend on regardless of holidays, year-end pressures, or legislative changes.
Proactive Communication
When something changes — a new HMRC rate, a legislative update, or a change to an employee's tax code — we flag it to you promptly and clearly. You will never find out about a payroll issue after it has already caused a problem.
How Does Our Payroll Processing Service Work From Setup to Submission?
We have designed our payroll process to be smooth, transparent, and completely hands-off for you once it is running. Here is exactly how it works:
1 — Payroll Setup and Onboarding
We begin by collecting all the information we need to set up your payroll accurately — existing employee records, current tax codes, pension scheme details, pay frequencies, and any outstanding payroll history. We handle the transition from your previous provider or internal system without any disruption to your pay run.
2 — Monthly Data Collection
Before each pay run, we collect any changes that need to be reflected — new starters, leavers, hours worked, bonuses, commission payments, salary changes, or statutory pay entitlements. We make this process simple and fast so it never becomes a burden on your time.
3 — Payroll Calculation and Compliance Check
We process your full payroll — calculating income tax, National Insurance contributions, pension deductions, and any other statutory or voluntary deductions — and run a thorough compliance check against current HMRC rates and your employees' individual records before anything is finalised.
4 — Payslip Preparation and Client Review
We prepare accurate payslips for every employee and share a full payroll summary with you for review before submission. You have full visibility of every figure before it goes anywhere.
5 — RTI Submission to HMRC
Once approved, we submit your Full Payment Submission to HMRC on or before your employees' payday — meeting every RTI deadline without exception and keeping your business fully compliant with PAYE reporting requirements.
6 — Pension Contributions and Auto Enrolment
We calculate and report all workplace pension contributions to your pension provider, manage auto enrolment obligations for eligible employees, and maintain the records required by The Pensions Regulator — all handled within the same pay run cycle.
7 — Year-End Processing and Reporting
At the end of each tax year, we prepare and distribute P60s for all employees, handle P11D reporting where required, and submit your final RTI submissions — closing out the tax year cleanly and completely with HMRC.
Ready to Outsource Your Bookkeeping?
Save up to 60% on accounting costs and get reliable bookkeeping support from our experienced team in India.
Frequently Asked Questions About Our Payroll Processing Services
Our payroll processing services cover everything from PAYE calculations and payslip generation to RTI submissions, auto enrolment pension compliance, statutory pay processing, and full year-end reporting. You do not need to manage any part of the process yourself — we handle it all.
Small business payroll processing with Northlight is straightforward. We collect your payroll data each period, process every calculation, check for compliance, prepare payslips, and submit your RTI returns to HMRC — all within your agreed timelines. You stay informed without being involved in the detail.
HMRC can issue automatic penalties for late RTI submissions starting from £100 per month for smaller employers and rising significantly for larger payrolls. Incorrect PAYE calculations can result in interest charges, penalty notices, and formal compliance investigations. Our managed payroll services ensure you are never exposed to these risks.
Yes. We manage the full transition from your current payroll system or provider — including migrating employee records, reconciling prior period figures, and ensuring your first pay run with us is as clean and accurate as every one that follows.
Yes. Auto enrolment pension compliance is included in our payroll processing services — covering contribution calculations, eligible worker assessments, opt-out management, and all reporting requirements for The Pensions Regulator.
We use industry-leading, HMRC-recognised payroll software to process and submit your payroll. You do not need to purchase or maintain any software yourself — everything is managed on our side.
We distribute payslips digitally to each employee in your preferred format — whether that is via a secure employee portal, direct email, or another method that suits your business. Every payslip is clear, accurate, and available on payday.
Yes. We handle weekly, fortnightly, four-weekly, and monthly payrolls — including businesses with mixed pay frequencies across different employee groups — all managed accurately within a single service.