Anyone using Xero for Payroll (single employee ltd company)

[kev1974]

Hi

I have a one man band Ltd Company. I have used Xero for my month by month bookkeeping for several years and am broadly happy with it and its shortcomings.

At year end my accountant logs in to my Xero and does the corporation tax, accounts for Companies House etc.

Around the end of March the same accountant also does my payroll. To date it's just been one annual payroll payment, of the Personal Allowance amount.

Now however they want me to change to monthly payroll (which I'm fine with as it would be nice to get some salary every month instead of having to wait until March 30th every year) but they want £30/month to run the payroll (per employee but as I mentioned there's only me), on top of their usual year end fees (which run to about £1000+vat per year).

My payroll is the simplest ever. It will be a simple payment of 1/12th the Personal Allowance, and corresponding National Insurance. No other complications such as car allowances. So I'm wondering if since I already use Xero for my bookkeeping can I not just use Xero's optional payroll module to handle this monthly payment and the necessary filings with HMRC. Xero payroll price is £5/month.

So does anybody use Xero Payroll for simple monthly payroll like this, is it easy to use and does it truly do everything that HMRC need it to do. Will it cause my accountant a load of extra work at year end if I've used Xero Payroll?

Thanks

[Dixy]

I use Xero but not for payroll. I use the HMRC basic PAYE tool which is a piece of cake and free..

[Ham_and_Jam]

I don’t usually recommend HMRCs free payroll offering as it’s a bit too simple for most businesses.

However for one employee being paid the same monthly amount, it’s perfect.

Obviously you will need to input the payroll manually into Xero, but that’s it.

Alternatives are available, such as Xero or standalone payroll software. I use Moneysoft, and it’s a breeze. Both are HMRC compliant and have much better UI and more features than the online HMRC payroll software.

In your case all 3 will do what you want, and what HMRC and your accountant need.

Whatever you do, don’t pay £360 / year for what will take you a few minutes a month.

[wheelerc]

I use it for me and one employee. Slight learning curve but once you know what you are doing it's a few minutes work each month. A bit more if you also do pensions.

It takes less time for me to do it in Xero than it used to for me to send pay details to accountants and get payslips etc back.

[MaxFromage]

They should be charging you £10+VAT for a monthly director payroll.

[kev1974]

Thanks for the pointers, I'll check them all out. Didn't even consider HMRC's own offering, or others. Suffice to say I won't take the accountant's "kind offer" up then!

[Mick87]

It's simple enough to setup and use. If you go on the "Demo Company" account you can have a play around with Payroll module without paying for it.

If you are paying yourself the same each month you can set it up so all you need to do is finalise the payroll each month, it then posts amounts to the correct journals and submits the RTI to HMRC.

[mickytruelove]

I used Xero for 5 employees, me being 1.

It is is simple. Add yourself as employee with hrs/wage.

Click run payroll, Check the numbers look right and it posts it, sends the necessary to HMRC, Print payslips. Send money to employees, HMRC, Pension ect.