Home-Based payroll bureau for small firms

Small employers such as cafés, tradespeople, care providers, shops and nurseries, plus sole traders who have taken on their first employee.

A monthly fee per client, or a fee per employee per pay run, with extras for pension submissions, year-end work and new starter set-up.

• Careful with numbers and detail
• Understanding PAYE, National Insurance and pensions
• Reliable with deadlines
• Discreet with confidential pay data

• Professional indemnity insurance, as mistakes can lead to penalties for your clients
• Data protection: check whether you need to register with the ICO and how you will store pay data securely
• Anti-money laundering rules: check whether you need to register with HMRC or a professional body for your services
• Hard deadlines for HMRC submissions and pension contributions, so plan cover for holidays and illness
• Agree in writing who is responsible for supplying correct information and for any penalties

Startup costs are typically around £300 to £2,000, depending on your payroll software, insurance and set-up choices. This is an estimate, so check current prices before you commit.

Monthly revenue is typically around £300 to £3,000, depending on how many small employers you serve and your fees. It is an estimate, and it starts from about 6 hours a week.

Check professional indemnity insurance, whether you need ICO registration, and whether anti-money laundering rules mean registering with HMRC or a professional body. Also plan cover for hard HMRC and pension deadlines, and agree responsibilities in writing.