Can I Do Payroll Myself, or Should I Hire Someone?

If you run a small business, you are probably used to wearing all the hats; sales, marketing, bookkeeping, HR, and even fixing the Wi-Fi when it goes down. So when it comes to payroll, it’s natural to wonder: Can I just do this myself?

The honest answer? Yes, you can. But there is a little more to it than downloading some software and pressing “run payroll.”

Payroll isn’t impossible, but it is precise

If you’ve got a head for numbers, love a tidy spreadsheet, and pay attention to detail, you will probably find the mechanics of payroll fairly straightforward once you get into it.

You can register as an employer with HMRC, use a payroll program to calculate pay, tax, and pensions, and submit reports through RTI each month. On paper, it’s logical, a process you can follow.

But the truth is, payroll lives in the details. Tax codes, auto-enrolment rules, statutory pay, new starters, leavers and holiday adjustments, one missed box or mistyped figure can throw everything off. And when payroll goes wrong, it’s not just a technical error; it’s people’s pay, their pensions, and your compliance on the line.

The learning curve is real

Most business owners can learn payroll, but learning it properly takes time. It’s not something you can just figure out on a quiet Friday afternoon.

You will need to get comfortable with things like:

• PAYE and RTI submissions to HMRC

• Auto-enrolment and pension uploads

• Statutory pay (sick, maternity, paternity)

• End-of-year tasks like P60s and P11Ds

• CIS returns, if you work with subcontractors

None of it is rocket science. But it is meticulous, and it changes often, meaning you will need to keep up with HMRC updates, deadlines, and software changes.

If you enjoy that kind of structure, you might actually like it. If not, it can quickly become one of those tasks you dread every month.

The hidden cost of “doing it yourself”

Many small businesses start out running payroll themselves to save money. It makes sense... until it doesn’t.

Because the hidden cost of DIY payroll isn’t in the software; it’s in the time you spend second-guessing yourself, the stress of getting it right, and the real-world impact if you don’t.

Late RTI submissions can trigger penalties. Incorrect deductions can upset staff. Pension errors can lead to letters from The Pensions Regulator. Suddenly, that “quick monthly task” starts to eat away at your headspace and your confidence.

What doing payroll actually looks like day to day

If you have never run payroll before, it’s easy to underestimate how many little steps sit between “I just need to pay people” and actually hitting ‘run payroll - submit’.

Each month (or week), you will need to:

• Gather and check employee hours, overtime, bonuses, and deductions

• Review tax codes and student loan adjustments

• Calculate pension contributions and upload them to the right provider

• Make sure everyone who’s joined or left that month is processed correctly

• File your RTI submission to HMRC by the deadline

• Pay your staff, pay HMRC, and store your records securely

It’s all doable, but it’s detail-heavy. You will spend a surprising amount of time cross-checking numbers, fixing rejected uploads, or chasing information.

The reality for many small business owners is that payroll rarely fits neatly into the working week. It’s something you squeeze in at the end of the month, often late at night, when you’d rather be doing literally anything else. And because mistakes can have knock-on effects for your staff, payroll becomes a task that always feels a bit high-stakes.

That’s why so many business owners hand it over once they’ve done it a few times. Not because they can’t, but because their time is better spent growing the business, serving customers, or just getting home on time.

When outsourcing makes sense

Outsourcing isn’t about giving up control; it’s about handing over the stress.

A good payroll partner keeps you in the loop but takes care of the technical side: submissions, payslips, pensions, CIS, and reports. You still approve the figures, but you never have to chase deadlines, check tax codes, or wonder if you have missed something.

For most business owners, that peace of mind, knowing it’s all handled properly, is worth far more than the monthly fee.

Finding your balance

If you are a small business, organised, and comfortable with numbers, doing your own payroll can work, especially if you have only got a handful of employees.

But if your team is growing, if your time is stretched thin, or if you would rather focus on running your business than learning HMRC compliance rules… It’s probably time to bring someone in.

So, can you do payroll yourself?

Payroll isn’t hard; it’s exact.

You can absolutely learn to do it, but it takes focus, patience, and regular attention to detail. If that sounds like your thing, great! We salute you.

If not? You don’t have to learn a whole new skill. We run payroll for businesses every week, accurately, on time, and without the stress.

Explore our Payroll Services and see how easy it can be to let the experts take it from here.

About Strive Business Limited

Strive is a Derbyshire-based accounting and bookkeeping practice supporting small businesses with payroll, accounts and day-to-day financial management. We work with clients across the UK, offering clear advice, accurate reporting and friendly support you can rely on.

Talk to Strive today about outsourcing your payroll or bookkeeping here.