Managing payroll is one of the most important tasks for any business but also one of the most time-consuming and risky if done incorrectly. With ever-changing tax rules, pensions auto-enrolment, and reporting obligations, even small mistakes can lead to HMRC penalties or unhappy employees.

At Modus Accountants, we take the stress out of payroll for businesses across Oxfordshire. Here’s what you need to know to run payroll smoothly in 2025.

1. What Does Payroll Involve?

Payroll is more than just paying staff. It includes:

Calculating salaries, overtime, bonuses, and deductions.

Handling PAYE income tax and National Insurance contributions.

Managing pensions and auto-enrolment.

Submitting Real Time Information (RTI) reports to HMRC.

Issuing payslips and maintaining records.

2. Common Payroll Mistakes SMEs Make (see also Comman accounting mistakes blog)

Missing deadlines – RTI submissions must be made on or before payday.

Incorrect tax codes – Employees may be over- or under-taxed.

Forgetting pensions duties – Auto-enrolment is a legal requirement.

Poor record keeping – HMRC requires records for at least 3 years.

DIY payroll without training – Using software incorrectly can cause compliance issues.

3. Benefits of Outsourcing Payroll

Outsourcing payroll to professionals ensures:

Accuracy – Payments and deductions are always correct.

Compliance – Up-to-date with HMRC rules and pension regulations.

Time-saving – More focus on growing your business.

Confidentiality – Sensitive data handled securely.

4. Payroll in 2025 – What’s New?

National Minimum Wage increases – impacting businesses from April.

Pension auto-enrolment updates – more staff qualifying for schemes.

Real Time Information penalties – HMRC increasing enforcement for late or incorrect filings.

5. How Modus Can Help Oxfordshire Businesses

We provide a full payroll service for SMEs across Witney, Oxford, Bicester, Carterton, and beyond. Our support includes:

Weekly or monthly payroll runs.

PAYE and NIC calculations.

Auto-enrolment compliance.

Secure digital payslips for staff.

Year-end reporting, including P60s and P11Ds.

FAQs – Payroll Services

Q: Do you work with very small businesses?
Yes, we manage payroll for businesses with as few as one employee.

Q: Can you integrate with our accounting software?
Yes, we use Xero, QuickBooks, and other cloud-based systems.

Q: What about CIS for contractors?
We handle Construction Industry Scheme deductions and reporting.

Next Steps

Payroll doesn’t need to be stressful. With Modus Accountants, you can be confident your team is paid correctly, your business stays compliant, and you have more time to focus on growth.

📞 Call us today on 01993 225030 or 📧 hello@modus-accountants.co.uk to discuss how we can take payroll off your hands.