🧾 How to Set Up a Payroll Bureau in the UK (And Actually Manage It)
Setting up a payroll bureau in the UK can be a smart, sustainable business — especially as more small businesses outsource complex compliance tasks like payroll. But success in payroll isn’t just about doing the calculations. It’s about managing people, processes, deadlines, legislation, and last-minute changes — all under pressure.
In this guide, we’ll walk through how to set up a payroll bureau in the UK, what software to choose, and why using a payroll management platform like ChangePen is essential if you want to scale without losing your sanity.
✅ Step 1: Define Your Services and Business Setup
Decide early:
- Will you serve microbusinesses, SMEs, or other accountants?
- Will you offer just payroll, or also onboarding, pensions, P11Ds, holiday tracking?
- Are you a sole trader, limited company, or part of a practice?
Most importantly, think operationally: how will you collect payroll data, manage changes, and ensure consistency each pay run? If the answer is email and spreadsheets — you’ll struggle fast.
✅ Step 2: Register as an HMRC Payroll Agent
You must register as a PAYE agent with HMRC:
- Create an agent services account via HMRC
- Request access for PAYE for Agents and CIS (if relevant)
- Authorise client access through agent codes
Every client needs to be linked to your agent account before you can file submissions on their behalf.
✅ Step 3: Choose the Right Payroll Software
The software you choose affects:
- Accuracy of payslips and RTI
- Pension submissions
- Bureau support (multi-employer functionality)
- Client portals
- HMRC compliance
Popular UK payroll software options include:
- BrightPay (desktop, bureau-friendly)
- IRIS Payroll Professional
- Moneysoft
- Paycircle (cloud-based)
- Staffology
Make sure it's HMRC-recognised, and ideally integrates with pension providers and accounting systems.
✅ Step 4: Manage the Chaos (Not Just the Payroll)
Here’s where many bureaus trip up: managing the process of payroll, not just the numbers.
Clients send last-minute changes. Documents go missing. Tasks fall through the cracks. Traditional payroll software was never built for managing workflows, queries, and responsibilities across a team.
That’s where a payroll management platform like ChangePen comes in.
👇 What ChangePen brings to the bureau:
- 📋 Task tracking across clients and pay cycles
- 🔁 Change control: track and log pay changes, approvals, and instructions
- 📎 Centralised document management and versioning
- 📬 Team collaboration without losing visibility
“Payroll isn't just about payslips. It's about the moving parts. ChangePen keeps them all connected, visible, and under control.”
ChangePen doesn’t replace your payroll software — it supercharges it by helping you run your bureau like a real operation.
✅ Step 5: Set Up the Right Tools and Processes
You’ll also want:
- Secure file transfer systems (GDPR-compliant)
- Templates for client onboarding and employee starters
- Pension scheme portals (Nest, People’s Pension, etc.)
- SLA-driven email and support processes
- Regular checklists for pre-run, run, and post-run stages
Document everything, and standardise your workflow — your future self will thank you.
✅ Step 6: Stay Compliant, Stay Current
UK payroll regulations are ever-changing:
- RTI and FPS filing deadlines
- Minimum wage increases
- Auto-enrolment rules
- New holiday pay regulations
Subscribe to HMRC agent updates, join forums like AccountingWeb or CIPP, and build in time each month to review legislation.
Final Word: Build Something You Can Scale
Starting a payroll bureau in the UK doesn’t require thousands of pounds of investment — but it does require discipline, smart tooling, and a process mindset.
Whether you're handling 5 clients or 50, the moment you stop relying on inboxes and spreadsheets is the moment you can start scaling with confidence.
