In an era where digital transformation dominates the business landscape, 12 Cloud Payroll has introduced a tailored pricing structure aimed at serving businesses of all sizes. Let’s delve deep into their pricing model, assess how it stacks up against competitors, and evaluate which types of businesses might benefit most from their offerings.
12 Cloud Payroll – Individual company prices
12 Cloud Payroll has crafted a sliding scale of pricing based on the number of employees a company has. It’s apparent that this pricing structure is designed to cater to companies ranging from startups with a handful of employees to large corporations.
RTI Payroll Prices Monthly
The pricing begins at a modest £5 per month for companies with 1-2 employees and goes up to a flexible model of £0.5 per employee per month for businesses with 500+ employees. This model seems particularly beneficial for substantial companies, where the per-employee cost becomes incrementally smaller as the workforce size increases.
| No. of Employees / Leavers e-Filed FPS | Cost (exclusive of VAT) |
|---|---|
| 1 – 2 Employees | £5 / month |
| 3 – 5 Employees | £10 / month |
| 6 – 9 Employees | £15 / month |
| 10 – 15 Employees | £25 / month |
| 16 – 20 Employees | £30 / month |
| 21 – 30 Employees | £40 / month |
| 31 – 50 Employees | £50 / month |
| 51 – 80 Employees | £60 / month |
| 81 – 100 Employees | £70 / month |
| 101 – 120 Employees | £80 / month |
| 121 – 150 Employees | £100 / month |
| 151 – 200 Employees | £120 / month |
| 201 – 300 Employees | £150 / month |
| 301 – 500 Employees | £200 / month |
| 500+ Employees | £0.5 / employee / month |
P11D and P11D(b) Prices
These returns are priced yearly, with P11D returns costing £5 per P11D employee and P11D(b) returns priced at £10 per company. This distinction emphasises the importance of understanding which type of return is more suitable for a company’s specific needs.
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| Type | Cost |
|---|---|
| P11D Returns | £5 / P11D employee / year |
| P11D(b) Returns | £10 / company / year |
12 Cloud Payroll – Pay Bureau / Agent Prices
A more complex two-tier pricing structure awaits pay bureaus or agents, highlighting 12 Cloud Payroll’s effort to accommodate the diverse needs of such intermediaries.
RTI Payroll Prices Monthly
The base price is a consistent £10 per month. However, there’s an additional per-employee charge of £0.20. This tiered structure suggests that 12 Cloud Payroll acknowledges the variable scale of operations that pay bureaus might handle.
| Criteria | Cost (exclusive of VAT) |
|---|---|
| Base Price | £10 / month |
| Per Employee per month | £0.20 / month |
P11D and P11D(b) Prices
Mirroring the structure set for individual companies, the yearly prices are £5 per P11D employee and £10 per company for P11D(b) returns.
CIS Prices
The CIS pricing method interestingly aligns with the RTI payroll prices. It’s based on the number of sub-contractors e-filed per tax month, making it essential for companies to accurately report their subcontractor numbers.
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12 Cloud Payroll pricing summary
While exact figures from competitors aren’t provided, based on industry knowledge, 12 Cloud Payroll seems competitive, especially for medium to large-sized companies.
Their flexible per-employee pricing for larger entities makes them a strong contender in the market. However, startups and very small businesses might find more cost-effective solutions elsewhere – see our payroll bureau pricing guide for more.
Who stands to benefit?
- Startups & Small Businesses: They can leverage the lower pricing brackets, though it’s advisable to compare with other providers catering specifically to this segment.
- Medium to Large Enterprises: These companies will significantly benefit from the decreasing per-employee monthly costs. The flexibility of the pricing structure means larger workforces can be managed without exorbitant fees.
- Pay Bureaus & Agents: The two-tier pricing structure is ideal for pay bureaus serving a diverse clientele. It allows for scalability while keeping base costs predictable.
Closing words
12 Cloud Payroll presents a nuanced and layered pricing structure catering to a broad spectrum of UK businesses. Their competitive pricing, especially for larger enterprises, makes them a worthy consideration. However, as with all financial decisions, businesses should conduct thorough market research and payroll comparisons before committing.
FAQ for 12 Cloud Payroll pricing
For individual companies, the pricing is determined based on the number of employees. Prices start at £5 per month for companies with 1-2 employees and progress in tiers, capping at a flexible model of £0.5 per employee for those with 500+ employees.
P11D returns are priced at £5 per employee per year, focusing on specific employee benefits. P11D(b) returns, which cover the employer’s Class 1A National Insurance contributions on benefits, are priced at £10 per company per year.
Pay Bureaus or Agents are subject to a two-tier pricing structure. They have a consistent base price of £10 per month, with an additional charge of £0.20 per employee, per month. This caters to their variable scale of operations.
The CIS pricing mirrors the RTI Payroll Prices. It’s based on the number of sub-contractors e-filed per tax month, emphasising the need for accurate subcontractor reporting.
No, all prices mentioned are exclusive of VAT. Businesses need to factor in VAT for the total cost.
While exact competitor figures aren’t provided in the initial information, 12 Cloud Payroll’s pricing, especially for larger enterprises, seems competitive in the market. However, it’s always advised for businesses to make direct comparisons based on their specific needs.
Yes, larger companies with over 500 employees are charged on a per-employee basis at £0.5 each, making it incrementally cost-effective as employee numbers rise.
The information provided does not mention any hidden fees. However, as with any service, it’s recommended to discuss directly with 12 Cloud Payroll for a comprehensive understanding of the costs.
The provided data doesn’t specify any contract duration or commitment period. Potential users should inquire directly about any contractual obligations.
This wasn’t mentioned in the initial overview. Regularly checking 12 Cloud Payroll’s official communication channels or contacting them directly will provide updates on any pricing changes.