MSP Payroll

In the third and final part of our series on termination payments, we look at ex gratia payments, what they are, how they are used in termination agreements and how payroll teams should process them correctly. In part one, we examined PiLON payments after an employee's contract is terminated. For guidance or practical support on…

Following part 1 of our in-depth here to find out more. What is a payment in lieu of notice? PILON is a payment provision that an employer can make to an employee instead of requiring them to work their notice period as defined in their employment contract. They receive a lump sum which represents the…

An organisation’s payroll team are responsible for some of the most important processes regularly executed within the business.  An error in processing, inaccurate SMP computations, non-compliance with UK payroll legislation, tax, pension and NIC calculation issues, all can result in disgruntled employees, a knock to the culture and reputation of the organisation and in some…

When an employee is dismissed, made redundant, or agrees to leave by mutual consent, payroll teams will be required to process a termination payment reflecting the agreed reason for leaving the business.  This differs from a final payslip, and although the two may be run at the same time, the differences should be clearly communicated…

Tax year-end is one of the busiest phases in a payroll team’s calendar.  There are a myriad of additional reports, processes and communications to employees and HMRC that aren’t required during other pay periods. This essential checklist looks at the core end of tax year submissions, the notifications required to comply with legislation and the…

On April 6th 2025, the NIC Employment Allowance increased from £5,000 to £10,500, following the Chancellor of the Exchequer, Rachel Reeves’s announcement in the previous October budget.  This was introduced primarily as a way of protecting small businesses from the impact of the increase in National Insurance rates.  There was also a removal of the…

Running payroll is a complex and intense part of the monthly people management process.  There are always moving parts that need to be managed, from SMP, holiday, and leavers through to BiK calculations and adapting to changes in NIC or tax.  Sometimes these complexities prevent payroll teams from hitting their deadline for Full Payment Submission…

In the Autumn budget 2025, the Chancellor, Rachel Reeves, announced changes coming into effect in 2029, which introduces a cap on NIC relief on salary sacrifice pension contributions.  This guide looks at: The changes coming into effect in 2029 How these changes will affect Payroll What is pension salary sacrifice? The different ways to contribute…

Processing payroll accurately and efficiently is one of the most important responsibilities an organisation regularly executes.  As a result, it is also stressful for in-house teams, fraught with complications, and inaccurate payroll processing can expose the business to significant risk to reputation, employee morale and litigation. Companies have two main options for managing payroll: through…

In 2024, HMRC announced the mandatory payrolling of benefits in kind (BiKs) for most benefits, ensuring the benefits are taxed in real time through PAYE rather than via the submission of P11Ds.  Originally, the deadline for mandatory transition was set as April 2026; however, as of a technical announcement from HMRC on 28th April 2025,…