Payroll Services London

Payroll Services for Small, Medium, and Large Businesses in UK

We know how tough it becomes for a business to get a trusted payroll service provider in London. BS Associates offers Payroll Services London, delivering fully managed payroll solutions to meet the needs of small, medium, and large enterprises across the UK. Our customized payroll services are designed to align seamlessly with your unique requirements.

PAYE Registration: If you are not registered as an employer already, we will register your company as an employer and will obtain the Pay As You Earn (PAYE) reference from HMRC. Our motto at BS Associates is to provide complete payroll solutions to our customers at one point. We also provide registration for the payroll of small businesses.

• Payroll Preparation: Based on the information provided to us by the employer and its employees, we will prepare weekly/monthly payroll and calculate the tax and NIC deductions based on HMRC guidelines.
• Real Time Information (RTI) Submission: All payroll information will be submitted in “real time” via our up to date software to HMRC
• Regular Payslips: you will receive weekly/monthly payslips regularly after payroll is submitted to HMRC On a monthly basis, you need to inform us the rate of pay and consumed hours by employees.
• Payroll Year End: At the end of the financial year, we will prepare the Payroll Year End documents, which include Pay Details, Pay Deductions, and P60 for the year, as well as calculate your total PAYE liability for the financial year. This Year End file will then be submitted to HMRC, again via Real Time Information.

In order to function smoothly the businesses need to keep all their financial paper works up to date. BS Associates not only provides you the best payroll solutions but also has a host of other services related to tax and accountancy.

Regular Payroll vs. Tronc Payroll

For many UK businesses—especially in hospitality—understanding the difference between regular payroll (PAYE) and a tronc payroll system is essential. The way wages, tips, and service charges are handled can significantly impact tax liabilities, employee take-home pay, and employer costs.

Below, we break down the key differences in plain language.

Regular Payroll (PAYE)

Regular payroll is the standard method where salaries, wages, overtime, statutory pay, and any tips processed through payroll are included.

• Tax & NICs: PAYE income tax and both employer and employee NICs are deducted on all elements, including tips processed via payroll.
• VAT Treatment:
  • Wages and salaries → outside VAT.
  • Tips paid directly to staff → outside VAT.
  • Voluntary service charges → outside VAT.
  • Mandatory service charges → subject to VAT (usually 20%).

Result: Straightforward to run, but higher overall cost due to NICs. Employees also receive slightly less net pay.

Tronc Payroll (Independent Troncmaster)

A tronc is a separate payroll arrangement where tips, gratuities, and service charges are distributed by an independent troncmaster, not the employer.

• Tax & NICs: Income tax is deducted, but no NICs apply (as long as the employer has no influence over how the money is distributed).
• VAT Treatment:
  • Voluntary tips (cash or card) → outside VAT.
  • Voluntary service charges → outside VAT.
  • Mandatory service charges → subject to VAT at the same rate as the meal.

Result: Employees usually take home more, and employer costs are reduced, though the system requires a separate payroll and more administration.

Side-by-Side Comparison

Choosing the Right Approach

Regular Payroll: Easy to manage, works best where tips and service charges are minimal.

Tronc Payroll: More efficient for businesses with significant tips/service charges, allowing staff to take home more while reducing employer NIC liability.

Both options are HMRC-compliant, but the right choice depends on your business size, structure, and staff payment model.

Call BS Associates and get all the trusted finance as well as tax related service under one umbrella in London, UK.

Our experts are just a phone call or a click away! please feel free to contact us on 01233801809 or info@bsassociate.co.uk

FULLY MANAGED AND OUTSOURCED PAYROLL SERVICES

We provide outsourced payroll services that are equally suitable for a small sole trader with just one or two employees or a large multinational organization with thousands of staff members. Our team specializes in developing customized payroll processing solutions tailored to meet our clients' unique and often intricate needs
Our approach involves a collaborative partnership with your business to gain a deep understanding of your payroll requirements. Subsequently, we design a bespoke payroll system with stringent quality standards, upholding our reputation as one of the premier payroll service providers in the UK.