Payroll

Essentials › Accounting › Payroll

Finance foundationsUnited Kingdom

The problem it solves

Payroll mistakes are personal and visible. A wrong tax code, a missed starter form or a late submission means unhappy staff, HMRC penalties and awkward conversations. Each pay run also involves statutory pay, pensions and thresholds that change every tax year, which are easy to get wrong without specialist software and a routine.

What it covers

  • Weekly, fortnightly or monthly pay runs
  • Income tax, National Insurance, student loan and pension calculations
  • Starters, leavers and P45s
  • Statutory sick, maternity, paternity and shared parental pay
  • RTI submissions to HMRC
  • Pension auto-enrolment assessments, letters and contribution uploads

Who it is for

Any business with employees, and director-only companies that pay a salary through PAYE.

Good to know in the UK

  • Under Real Time Information, a Full Payment Submission must reach HMRC on or before the day staff are paid.
  • Workers aged 22 to State Pension age who earn over £10,000 a year must be automatically enrolled into a workplace pension. Minimum total contributions are 8% of qualifying earnings, with at least 3% from the employer.
  • The main rate of employer National Insurance rose to 15% from April 2025.

Questions to ask a provider

  • Can you handle our pay frequency, shifts, bonuses or commission?
  • Do you manage pension enrolment from start to finish?
  • How do staff receive their payslips?
  • What is the cut-off for changes before payday?

This is a plain-English summary for United Kingdom businesses. It is general information, not financial, tax or legal advice, and rules change: facts last checked 8 November 2026. Speak to a qualified adviser about your own situation.