In-House vs. Outsourced Payroll Costs in the UK

Managing payroll in-house costs £20,000 to £45,000 per year for one payroll staff member. You also need to buy software (£10 to £100 per month) and spend on training. Extra costs include National Insurance and pension contributions.
Outsourcing payroll is cheaper. It costs £4 to £6 per employee each month. A setup fee may apply, around £0 to £2 per employee. Some providers charge extra for services like P60 generation.
In-house payroll takes time. Outsourcing saves 5 to 10 hours each payroll cycle.
Outsourcing also reduces compliance risks and offers better data security. It’s cost-effective and can improve efficiency.