Payroll Compliance and Health Check Services in the UK

Ensure your payroll is HMRC-compliant with a Phrism Payroll Compliance and Health Check. We'll review your systems and procedures to identify and resolve any potential issues, giving you peace of mind. Book a free consultation today!

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A payroll compliance and health check is a comprehensive review of your payroll systems and procedures to ensure that they meet all HMRC requirements. This includes checking that you are calculating and deducting the correct amount of tax and National Insurance contributions from your employees’ pay, and that you are submitting the correct returns and payments to HMRC on time.

Importance Of
Payroll Health Check & Compliance

Payroll compliance is important for a number of reasons. Firstly, it ensures that you are meeting your legal obligations as an employer. Secondly, it helps to protect your employees from financial hardship if they are underpaid or overpaid. Thirdly, it can help to reduce the risk of fines and penalties from HMRC.

Frequently Asked Questions

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A payroll compliance and health check is a comprehensive review of your payroll systems and procedures to ensure that they meet all HMRC requirements. This includes checking that you are calculating and deducting the correct amount of tax and National Insurance contributions from your employees’ pay, and that you are submitting the correct returns and payments to HMRC on time.
Payroll compliance is important for a number of reasons. Firstly, it ensures that you are meeting your legal obligations as an employer. Secondly, it helps to protect your employees from financial hardship if they are underpaid or overpaid. Thirdly, it can help to reduce the risk of fines and penalties from HMRC.
All businesses should have a payroll compliance and health check on a regular basis, regardless of size or industry. However, it is especially important for businesses that have recently implemented new payroll software or procedures, or that have experienced changes to their workforce.
A typical payroll compliance and health check will involve a review of the following:
  • Payroll software and processing procedures
  • Employment status of all workers
  • Compliance with National Minimum and Living Wage legislation
  • Compliance with part-time and casual workers’ legislation
  • Compliance with salary sacrifice legislation
  • Payroll checking procedures
  • Procedures for leavers and termination payments
  • Procedures for pensions payroll and automatic enrolment
  • Procedures for payroll returns and remittances
  • Procedures for treatment of expenses and benefits
It is advisable to have a payroll compliance and health check at least once a year. However, you may need to have more frequent checks if there have been any changes to your payroll software, procedures, or workforce.
The benefits of having a payroll compliance and health check include:
  • Peace of mind knowing that your payroll is HMRC-compliant
  • Reduced risk of fines and penalties from HMRC
  • Protection for your employees from financial hardship if they are underpaid or overpaid
  • Improved accuracy and efficiency of payroll processing
  • Identification and resolution of potential payroll problems before they cause major issues
The cost of a payroll compliance and health check will vary depending on the size and complexity of your payroll. However, most providers offer a free consultation so that you can get an idea of the cost involved before you commit to anything.
There are a number of signs that you may need a payroll compliance and health check, including:
  • You are using outdated payroll software or procedures
  • You have recently changed payroll software or procedures
  • You have experienced changes to your workforce, such as new hires, terminations, or changes in employment status
  • You have received a warning or penalty from HMRC
  • You are unsure whether your payroll is HMRC-compliant
The consequences of non-compliance with payroll legislation can include:
  • Fines and penalties from HMRC
  • Interest on unpaid tax and National Insurance contributions
  • Repayments of overpaid tax credits
  • Criminal prosecution in serious cases
It is therefore important to take all reasonable steps to ensure that your payroll is HMRC-compliant

Definitely. We ensure your HR operations remain compliant with global standards and are protected against threats.

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pHRism have supported us for over 10 years and always provided an exceptional service. Muneer & team are incredibly hard working, highly skilled and knowledgeable. Can't recommend them highly enough.

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