Getting Started with PAYE

Calculating the correct amount of Income Tax to deduct from employee pay is a core responsibility when running payroll. This article walks you through the step-by-step process of working out Income Tax deductions for each pay period, including what information you need and how...

5 min read

Setting up payroll for the first time involves more than just working out how much to pay your employees. You need to choose HMRC-recognised software, understand your reporting obligations, and complete specific tasks each time you run payroll. This guide walks you through the...

7 min read

If your business stops employing people, you must notify HMRC straight away and close your PAYE scheme properly. This involves submitting a final payroll return, paying any outstanding tax and National Insurance, and giving your employees their P45 forms on their last day.

4 min read

Understanding employee tax codes is essential when running payroll. Tax codes tell your payroll software how much tax to deduct from each employee's pay throughout the year. This guide explains how to read tax codes, what the numbers and letters mean, and what action to take when HMRC issues a new...

5 min read

HMRC's Basic PAYE Tools is free payroll software designed for small employers with fewer than 10 employees. It allows you to calculate tax and National Insurance, process payroll, and send the required information to HMRC online. This guide explains how to download, install, and start using the...

4 min read

PAYE (Pay As You Earn) is HMRC's system for collecting Income Tax and National Insurance from employment. If you employ staff, you'll usually need to register for PAYE and use it to deduct tax from their wages before you pay them. Understanding when you need to register and what you're required to...

5 min read