Using HMRC's Basic PAYE Tools

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 software to run your payroll.

What Basic PAYE Tools does

Basic PAYE Tools helps you perform most payroll tasks without paying for commercial software. You can use it to:

• Work out the tax and National Insurance deductions for your employees
• Send payroll information to HMRC online
• Check a new employee's National Insurance number
• Send an Employer Payment Summary

If you already have payroll software that cannot handle certain tasks, you can use Basic PAYE Tools alongside it for specific functions like checking National Insurance numbers or submitting Employer Payment Summaries.

Who can use it

Basic PAYE Tools is intended for businesses with fewer than 10 employees. It is not designed for professional bookkeepers or agents. If you fall into those categories, you will need to use alternative commercial payroll software.

Before you download

You must register with HMRC as an employer before you can use Basic PAYE Tools. You will also need a login for PAYE Online. Without these, the software will not work properly, as you need them to submit payroll information to HMRC.

System requirements

Before downloading, check that your computer meets the minimum requirements:

Hardware:

• Intel Core (i3/i5/i7/i9), AMD equivalent, or better
• 4 GB RAM
• 80 GB, 7200 rpm hard disk
• DirectX 11 (or greater) capable video hardware

Operating systems supported:

• Windows 10 and 11
• macOS version 15 'Sequoia' and 16 'Tahoe'
• Ubuntu Linux version 24.04 LTS and 25.10

Only 64-bit Intel/AMD compatible versions of these operating systems are supported. MacOS is also supported on Apple Silicon processors.

Browser (if you need assistive software support):

• Microsoft Edge (Windows only)
• Google Chrome
• Mozilla Firefox
• Apple Safari (macOS only)

Internet connection: You need an active internet connection to submit payroll information online, receive automatic updates, use email features, and access web links.

Downloading and installing

Basic PAYE Tools is available for Windows, Mac, and Linux. The download files are:

• Windows: 187MB
• Mac: 248MB
• Linux: 182MB

If your computer is part of a network, you may be unable to download software. Contact your IT service for support.

The latest version number is 26.0.26069.145147. You can see this displayed in the bottom-left corner of the software once installed.

When you first install the software, make sure you select the update option in your tool settings. This allows Basic PAYE Tools to check for updates automatically when the tax year changes or new rules come into effect.

Important: Never uninstall your current version of Basic PAYE Tools before installing an update. If you do, you will lose all your payroll data.

Setting up for the first time

Once installed, you will need to add your employer details and your employees' information to the software. HMRC provides step-by-step guides to help first-time users through the installation and setup process.

You will need your employer PAYE reference and your PAYE Online login details to send submissions to HMRC.

Using the software

Basic PAYE Tools guides you through the process of running payroll step by step. The software calculates what tax and National Insurance you need to deduct from each employee's pay, and prepares the information you need to send to HMRC.

The user guide provides detailed instructions on how to:

• Enter employee pay information
• Process payroll for each pay period
• Make submissions to HMRC
• Handle new starters and leavers

Getting help

If you experience issues downloading or opening Basic PAYE Tools, check HMRC's service availability and issues page for guidance on what to do.

HMRC's user guides for Basic PAYE Tools are updated when there are major changes to the software, but may not be updated every year. The guides provide step-by-step help for employers with fewer than 10 employees.

You will also need Adobe Reader or a compatible equivalent to open printable forms within the software.

Limitations to be aware of

While Basic PAYE Tools covers most payroll tasks for small employers, it does have some limitations. If your needs are more complex, or you are a bookkeeper or agent running payroll for multiple businesses, you will need to use commercial payroll software instead.

Sources

• Download HMRC's Basic PAYE Tools
• First time users: install and set up Basic PAYE Tools
• Basic PAYE Tools user guide

This article provides general guidance based on current HMRC rules. For advice specific to your situation, speak to your accountant.