Construction Payroll Services 2026: UK CIS, Costs & Best Providers Compared Quick answer
Construction payroll services are specialist payroll solutions designed for UK construction firms that must comply with the Construction Industry Scheme (CIS), manage subcontractors, handle variable pay rates, and track labour costs across multiple job sites.
In 2026, UK construction payroll services typically cost:
£4-£10 per employee per month (software)
£6-£15 per payslip (fully outsourced payroll)
Additional CIS verification or subcontractor processing fees may apply
They help contractors remain compliant with HMRC, automate CIS deductions, produce certified payroll reports, and improve job costing accuracy.
Need payroll support for your business?
This quote service is best for UK businesses that want to compare outsourced payroll, managed payroll, payroll software, payslips, pension support, CIS payroll or payroll services for growing teams.
Compare Payroll Service Quotes
Payroll Cost Calculator UK Estimate your monthly payroll cost based on employee numbers, pay frequency, pension duties, CIS, payslips, reports and support level.
Pay frequency
Monthly Weekly Fortnightly Four-weekly Mixed payroll frequencies Weekly payroll usually costs more because it runs more often.
Payroll service type
Payroll software only Managed payroll service Fully outsourced payroll Payroll bureau / accountant Software is usually cheaper; outsourced payroll gives more support.
Business type
Office / admin business Retail / shop Hospitality / restaurant / café Construction / trades Care / healthcare Agency / variable staff Professional services Multi-site business Variable hours, shifts and CIS can increase payroll complexity.
Need workplace pension / auto-enrolment support?
No Basic pension submissions Full auto-enrolment support Includes pension assessment, contributions or pension file uploads.
Need CIS payroll?
No Yes, include CIS Useful for construction businesses paying subcontractors.
Variable pay complexity
Low: fixed salaries Medium: overtime / bonuses High: shifts, tips, commissions or allowances Hospitality, retail and sales teams often need more checks.
Payslip delivery
Digital payslips Employee portal Printed payslips Printed payslips can add admin and postage costs.
Need HR support?
No Basic HR advice Payroll + HR support Useful if you need contracts, absence, holiday or employment advice.
Reporting level
Basic payroll reports Management reports Advanced reports / costing / departments Departmental reporting can be useful for larger teams.
Need year-end support?
Yes No Includes end-of-year payroll checks and employee documents where relevant.
Setup / migration needed?
No setup needed Standard setup / migration Complex migration / multiple payrolls Changing provider mid-year may require extra setup.
Your estimated payroll costs
Estimated monthly cost
£0
Cost per employee/month
£0
Potential monthly saving
£0
Enter your payroll requirements to estimate your costs.
Recommendation will appear here.
This calculator is an estimate only. Actual payroll costs vary by provider, employee count, pay frequency, payroll complexity, pension duties, CIS, HR support, setup, integrations, reporting and service level.
Contents
What Are Construction Payroll Services?
Our Top Construction Payroll Services
Benefits of Construction Payroll Services
Key Features of Construction Payroll Services
How do we work?
Transparent, impartial, and data‑driven reviews made by a team of expert humans, never AI generated – here’s exactly how Compare Your Business Costs helps you find the best deals from trusted UK providers: click here
Authored by: Ally Cox (Business Technology & B2B Services Specialist 10+ Years’ Experience)
Reviewed by: James Ward (Telecoms Specialist, 12+ Years Experience)
Last Updated: July 2026
Key Takeaways
🏗️ Built specifically for contractors managing subcontractors and CIS deductions
💷 Average cost: £4-£15 per employee/payslip depending on service level
📑 Automates CIS verification and monthly returns to HMRC
📊 Improves job costing and labour tracking by site or project
📱 Mobile time tracking is essential for site-based teams
⚖️ Reduces compliance risk with audit trails and reporting
What Are Construction Payroll Services? Construction payroll services are payroll systems or outsourced providers tailored to the construction industry’s unique requirements, and unlike standard payroll, construction payroll must manage:
CIS tax deductions
Subcontractor verification
Variable hourly rates
Overtime, bonuses and site allowances
Multiple job sites
Temporary and seasonal workers
Government contract reporting requirements
Specialist providers automate these processes while ensuring compliance with the HM Revenue & Customs and the Construction Industry Scheme.
Construction Payroll Costs in the UK (2026) Pricing will always depend on workforce size, subcontractor numbers and whether you choose software or outsourcing.
1️⃣ Payroll Software (In-House Management)
Business Size
Typical Monthly Cost
1–10 workers
£30–£120
11–50 workers
£120–£400
50+ workers
£400+ (tiered pricing)
(Often charged per employee/subcontractor per month.)
2️⃣ Outsourced Construction Payroll
Service Type
Typical Cost
Employee payroll processing
£6–£15 per payslip
CIS subcontractor processing
£5–£12 per subcontractor
Setup fees
£0–£750 depending on complexity
Remember – Outsourcing is typically more expensive but significantly reduces admin burden.
Our Top Construction Payroll Services Why Construction Payroll Is More Complex Than Standard Payroll
Standard Payroll Construction Payroll
Fixed salary staff
Variable rates & site allowances
PAYE only
PAYE + CIS
Single location
Multiple job sites
Stable workforce
High subcontractor turnover
Benefits of Construction Payroll Services Construction payroll services will ensure that all calculations are accurate, and payments are processed correctly. In addition, we have seen that outsourcing payroll allows construction companies to focus on core business activities rather than administrative tasks.
Also, while using payroll services does have a cost, the efficiency and accuracy they bring can result in significant savings. You will reduce errors and improve your accuracy with time-tracking, which will, therefore, affect job costing and labour quotes.
If you’re a small business owner, you’ll know that accurate and timely payroll processing contributes to employee satisfaction and trust. Construction payroll services ensure that employees are paid correctly and on time, which can greatly improve your morale and reduce turnover.
Key Features of Construction Payroll Services
Costings of your job, and labour tracking.
Construction payroll services provide tools to track labour costs by job site, project, or phase, which can help you to allocate and keep on track of your spending – so you can quote people accurately the first time around.
Compliance with the law
The construction industry is subject to numerous labour laws and regulations, and these are always changing. Take the stress out of having to constantly stay up to date and let payroll services do it for you!
Certified payroll reports
Certified payroll reports are required for government contracts to demonstrate compliance with current wage laws, and construction payroll services generate these reports accurately – again, so you don’t have to!
Automated time tracking
Construction payroll services often integrate with time tracking systems (but always double-check before signing up with a provider!) The aim of this is to obviously automate the collection and processing of work hours, saving you time.
Mobile accessibility
Given the nature of construction work, mobile accessibility is essential, and in addition many construction payroll services offer mobile apps or web portals that allow employees to clock in and out, view their payslips, and manage their personal information from anywhere.
Frequently Asked Questions (FAQs) 1. What is CIS in construction payroll?
CIS (Construction Industry Scheme) is a UK tax scheme requiring contractors to deduct tax from subcontractor payments and submit returns to HMRC.
2. How much does construction payroll cost in the UK?
Most firms pay between £4 and £15 per worker per month, depending on whether payroll is managed in-house or outsourced.
3. Do I need specialist payroll for construction?
If you use subcontractors or operate under CIS, specialist payroll is strongly recommended to ensure compliance and avoid penalties.
4. Can construction payroll software handle multiple sites?
Yes. Most modern platforms allow labour tracking by site, project and cost centre.
5. What happens if CIS returns are late?
Late or incorrect submissions can result in penalties from HMRC, including fines and interest charges.
6. Is construction payroll different for limited companies?
Limited companies must still comply with PAYE and CIS rules if operating as contractors. The payroll structure may differ, but compliance requirements remain.
7. How long does it take to set up construction payroll?
Setup typically takes 1-3 weeks, depending on subcontractor numbers and data migration requirements.
Our Final Thoughts We think tht construction payroll is one of the most compliance-heavy payroll types in the UK. Between CIS deductions, subcontractor verification, fluctuating labour costs and site-based tracking, standard payroll solutions often fall short.
A specialist construction payroll provider can:
Protect your business from compliance risk
Improve project profitability tracking
Save significant administrative time
Ensure accurate and timely payments
For most UK contractors, investing in tailored payroll support delivers long-term financial and operational benefits.
Related Payroll & HR Guides If you’re researching payroll services, the guides below explore specific providers, compliance topics, and specialist use cases in more detail.
Payroll Services & Outsourcing
Compare different outsourcing models and managed solutions:
International & Global Payroll
For businesses hiring overseas or operating across multiple countries:
Payroll Software Providers
If you’re comparing payroll software instead of outsourcing:
Enterprise Payroll Providers
For larger organisations and complex payroll structures:
Specialist Payroll Solutions
Industry-specific and niche payroll guidance:
Payroll Compliance & HMRC Guidance
Understand the regulatory side of payroll:
Hi, I’m Ally Cox , a senior copywriter and blogger at CompareYourBusinessCosts.co.uk, the UK’s trusted platform for comparing business services.over a decade of experience in the B2B sector, I specialise in simplifying complex topics like leased lines, VoIP, business energy, HR and payroll solutions, accounting software, and EPOS systems .HR, copywriting, and business operations- from clocking-in systems to card machines and office technology .informed, confident decisions when choosing products and services that improve efficiency and save money.
