Payroll requires employers to calculate pay and deductions, report to HMRC and pay the correct amount on time. Responsibility remains with the employer even when software or an external provider is used.
Before the first payday
Register as an employer where required, collect reliable starter information and choose RTI-capable software. Check employment status, written particulars, minimum wage and workplace pension duties.
Calculate and report pay
Payroll may include Income Tax, employee and employer National Insurance, pensions, student loans, statutory payments and other deductions. Send a Full Payment Submission on or before the employee’s normal payday. Use an Employer Payment Summary where required to report reductions, inactivity or specific claims.
2026/27 National Insurance
A standard category A employee generally pays 8% between the £12,570 primary threshold and £50,270 upper earnings limit, then 2% above. The standard employer rate is 15% above the £5,000 secondary threshold. Category letters and reliefs can change the result.
Pay HMRC and complete year-end work
The normal electronic-payment deadline is the 22nd after the tax month; postal payments are normally due by the 19th. Reconcile submissions, the HMRC account and payments. Complete the final payroll report, provide P60s and deal with expenses and benefits as required.
Minimum wage
From 1 April 2026, the National Living Wage is £12.71 for workers aged 21 and over. Detailed working-time and deduction rules mean the headline hourly rate alone may not prove compliance.
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