Accurate, on-time payroll without the hassle. Taxlab runs payroll for small and medium-sized employers in Bathgate, West Lothian and across Scotland. We calculate your employees’ pay, deductions and statutory payments, send your reports to HMRC under Real Time Information (RTI), manage your workplace pension duties and tell you exactly what to pay and when.
Payroll mistakes are costly and upsetting for staff. With payroll specialists handling it for you, you can be confident your team is paid correctly and your business stays compliant.
Our payroll services
- Weekly, fortnightly, four-weekly or monthly payroll, with payslips for every employee
- RTI submissions to HMRC – Full Payment Submissions on or before every payday, and Employer Payment Summaries where needed
- PAYE and National Insurance – we tell you how much to pay HMRC and when
- Workplace pensions – auto-enrolment assessments, pension contributions and your declaration of compliance with The Pensions Regulator
- Statutory payments – sick, maternity, paternity, adoption, shared parental, parental bereavement and neonatal care pay
- Starters and leavers, P45s, P60s and year-end reporting
- Director payroll – setting a tax-efficient salary for company directors
- Expenses and benefits, including P11D reporting and preparing for payrolled benefits from April 2027
- Student loan, postgraduate loan and other deductions
PAYE and Real Time Information (RTI)
Pay As You Earn (PAYE) is how HMRC collects Income Tax and National Insurance from employees’ pay. Under Real Time Information, employers must send HMRC a Full Payment Submission (FPS) on or before each payday, showing what each employee was paid and what was deducted.
You then pay HMRC the tax and National Insurance due by the 22nd of the following tax month if you pay electronically, or the 19th by post. If you usually pay less than £1,500 a month, you may be able to pay quarterly. Find out how to pay employer’s PAYE.
Payroll rates and thresholds for 2026/27
The main figures for the tax year 6 April 2026 to 5 April 2027, from HMRC’s rates and thresholds for employers 2026 to 2027:
| Rate or threshold | 2026/27 |
|---|---|
| Personal Allowance | £12,570 a year (£1,048 a month) |
| Employee National Insurance (category A) | 8% between £12,570 and £50,270; 2% above |
| Employer National Insurance | 15% on earnings above £5,000 a year (£417 a month) |
| Lower Earnings Limit | £129 a week (£6,708 a year) |
| Employment Allowance | Up to £10,500 off your employer National Insurance bill |
| Statutory Sick Pay | £123.25 a week or 80% of average weekly earnings, if lower |
| Statutory Maternity, Paternity and other family pay | £194.32 a week or 90% of average weekly earnings, if lower |
| Apprenticeship Levy | 0.5% of pay bills over £3 million |
Employer National Insurance is not due on earnings up to £50,270 a year for employees under 21, apprentices under 25 and eligible veterans.
Scottish income tax
Employees who live in Scotland pay Scottish rates of income tax through PAYE, with an “S” prefix on their tax code. For 2026/27 there are six bands above the Personal Allowance: starter 19%, basic 20%, intermediate 21%, higher 42%, advanced 45% and top 48%. Getting the tax code right matters, and we check every one.
National Minimum Wage and National Living Wage
From 1 April 2026, the minimum hourly rates are:
- £12.71 for workers aged 21 and over (National Living Wage)
- £10.85 for workers aged 18 to 20
- £8.00 for under-18s and apprentices aged under 19 or in the first year of their apprenticeship
Statutory Sick Pay from day one
From April 2026, Statutory Sick Pay is paid from the first day of sickness, and the weekly rate is £123.25 or 80% of the employee’s average weekly earnings, whichever is lower. Our payroll software applies the new rules automatically.
Workplace pensions and auto-enrolment
Every employer must put eligible staff into a workplace pension scheme. Eligible staff are aged between 22 and State Pension age, earn at least £10,000 a year and normally work in the UK. The minimum total contribution is 8% of qualifying earnings, of which the employer must pay at least 3%. For 2026/27, qualifying earnings are between £6,240 and £50,270 a year, according to The Pensions Regulator.
We assess your staff each pay period, deal with enrolments and opt-outs, and send your declaration of compliance. Read more about auto-enrolment.
Payrolling benefits in kind from April 2027
HMRC has confirmed that from April 2027, most employers providing medical benefits, company cars, vans and car or van fuel must report them through payroll and deduct the tax in real time, instead of reporting them on P11D forms after the year end. From April 2028, most other benefits in kind will follow, except employer-provided loans and accommodation. See HMRC’s policy paper on mandatory reporting of benefits in kind in RTI. If you provide company cars or private medical cover, we can get your payroll ready now.
Late filing and payment penalties
HMRC can charge a monthly penalty if your FPS is late, based on the number of employees:
| Number of employees | Monthly penalty |
|---|---|
| 1 to 9 | £100 |
| 10 to 49 | £200 |
| 50 to 249 | £300 |
| 250 or more | £400 |
Interest is charged daily on late payments, and further penalties can apply if you do not pay on time or in full.
Why choose Taxlab for your payroll?
- Chartered Certified Accountants, regulated by ACCA
- Payroll, bookkeeping, VAT and year end accounts under one roof
- Payroll that links to Xero and FreeAgent
- Fixed fees agreed in advance
- Based in Bathgate, West Lothian, working with employers across Scotland
Taking on your first employee? Our business start-up service covers registering as an employer.
Payroll FAQs
Do I need to run payroll if I am the only director?
Yes, if you are paid a salary. HMRC says you must register as an employer even if you are only employing yourself, for example as the only director of a limited company, and you must register before your first payday. Most owner-directors take a modest salary through payroll and the rest as dividends, and we work out the best split each year. If your company has only one director, they must not be the only employee liable for employer National Insurance for the company to claim the Employment Allowance.
Can I pay HMRC quarterly instead of monthly?
If you usually pay HMRC less than £1,500 a month, you may be able to pay quarterly. You must still send an FPS every payday.
When must I set up a workplace pension?
Your pension duties start on the day your first member of staff starts work. You must assess staff and enrol those who are eligible.
Talk to us about payroll
Call 0845 862 6009, email hello@taxlab.co.uk or message us on WhatsApp.
Figures are for the 2026/27 tax year. This page gives general information only and is not tax or employment advice.