Guide to UK payroll consultancy – Services, types of consultant, costs, and how to get started

Last checked and updated on 24 May 2022

If you’re a business owner in the UK, then you may be wondering if you need to hire a payroll consultant. What services do they offer? What are the costs associated with using their services? And how do you go about finding and hiring the right one for your business? In this comprehensive guide, we will answer all of those questions and more.

We’ll start by discussing what payroll consultants actually do, then move on to the different types of consultant that are available. After that, we’ll take a look at some of the reasons why businesses might choose to work with a payroll consultant, as well as the costs associated with doing so.

Finally, we’ll provide some tips on how to find and hire the right consultant for your business.

What is a payroll consultant?

So, what exactly do payroll consultants do? In short, they help businesses to manage their payroll processes and systems. This can include everything from setting up new payroll systems to providing ongoing support and payroll advice.

They may also be involved in training staff on how to use the system, or helping to troubleshoot any problems that might arise.

Types of payroll consultancy services

There are two main types of payroll consultant: those who work in-house, and those who work for an external consultancy.

In-house consultants are usually employed by the business that they’re working for, whereas external consultants are self-employed and work with multiple clients.

The type of consultant you choose will depend on your specific needs and requirements.

Pros and cons of hiring an external consultancy

There are both pros and cons to hiring an external consultancy.

On the plus side, you can benefit from their expertise and experience in working with a variety of different businesses. This means that they’re likely to have a good understanding of best practice when it comes to payroll management.

They may also be able to offer a more objective perspective, as they’re not directly involved in the day-to-day running of your business.

On the downside, external consultants can be more expensive than in-house staff. This is because you’ll need to pay their hourly rate, as well as any travel and accommodation costs if they’re based further afield.

You may also need to factor in the cost of any software or tools that they use.

Why hire a payroll consultant?

There are a number of reasons why businesses might choose to work with a payroll consultant. One of the most common is that it can save them time and money.

HR & Payroll systems can be complex and time-consuming to set up and manage, so outsourcing this task to a specialist can free up valuable resources within the business.

In addition, consultants can offer expert advice and support on all aspects of payroll, from compliance to tax issues.

Some of the key benefits of working with a payroll consultant include:

  • Saving time: Payroll consultants can take care of all your payroll needs, freeing up your time to focus on other areas of your business.
  • Saving money: Payroll consultants can help you to avoid costly mistakes and ensure that you’re compliant with all the latest legislation.
  • Expert advice: Payroll consultants have a wealth of knowledge and experience, which they can use to advise you on the best course of action for your business.
  • Peace of mind: Payroll consultants can provide you with peace of mind by ensuring that your payroll is in good hands.

How much do payroll consultancy services cost?

The costs of working with a payroll consultant will vary depending on the services you require. In most cases, you will be charged an hourly rate for their services. This will usually be based on the level of experience and expertise that the consultant has.

As a general rule, you can expect to pay between £500 and £2000 per month for their services.

In some cases, you may also be charged a fixed fee for certain tasks, such as setting up a new payroll system.

However, it’s important to remember that the savings you make by outsourcing your payroll to a consultant can often outweigh the cost of their fees.

How to find a payroll consultant for your business

If you’re thinking about working with a payroll consultant, the first step is to find one that’s right for your business. There are a number of ways to do this, including searching online or contacting professional associations.

Once you’ve found a few potential consultants, it’s important to meet with them to discuss your specific needs. This will help you to identify the right consultant for your business and ensure that you get the best possible value for money.

Questions to ask potential payroll consultants

When you’re meeting with potential payroll consultants, it’s important to ask the right questions. This will help you to assess their suitability for your business and identify any red flags.

Some of the key questions you should ask include:

  • What experience do you have in working with businesses like mine?
  • Do you have any specific qualifications or accreditations?
  • What services do you offer?
  • How much do you charge for your services?
  • What are your availability and turnaround times?
  • Do you have any references I can contact?

By asking these questions, you’ll be able to get a better understanding of the consultant’s experience, skills, and abilities. You’ll also be able to gauge their suitability for your business and get an idea of their fees.

Final words

We hope this guide has been helpful in providing you with some insight into payroll consultancy in the UK. Payroll consultants can offer a lot to businesses – from saving time and money, to providing expert advice and support.

Frequently asked questions

Do I need to hire a payroll consultant?

There is no one-size-fits-all answer to this question. It will depend on your specific needs and requirements.

What type of payroll consultant should I choose?

Again, this will depend on your specific needs and requirements. In-house consultants are usually employed by the business that they’re working for, whereas external consultants are self-employed and work with multiple clients.

How much do payroll consultancy services cost?

The costs of working with a payroll consultant will vary depending on the services you require. In most cases, you will be charged an hourly rate for their services. As a general rule, you can expect to pay between £500 and £2000 per month for their services.

How do I find a payroll consultant for my business?

There are a number of ways to find a payroll consultant for your business, including searching online or contacting professional associations.

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Important – The information provided in our articles is intended to be for general purpose use only, and not advice for you or your business. We strive to publish accurate information, but encourage you to fact-check and seek expert guidance. We recommend that you always speak to a qualified professional to get advice about how to operate your business under your specific requirements and circumstances.