HMRC Basic PAYE Tools
HMRC's Basic PAYE Tools is a free payroll software from HMRC for businesses with fewer than 10 employees.
Basic PAYE Tools User Guide
The software allows you to perform most payroll tasks, including working out the tax and National Insurance for your employees and sending this information to HMRC.
If you have payroll software that cannot do certain tasks, you can use Basic PAYE Tools alongside it to
- check a new employee's National Insurance number (NVR)
- send an Employer Payment Summary (EPS)
- send an Earlier Year Update (EYU) - for the 2019 to 2020 tax year and earlier
Basic PAYE Tools has some limitations. It is not designed for agents or bookkeepers.
- It does not produce payslips.
- It does not record any other deductions unrelated to PAYE such as an attachment of earnings.
- It does not support the change of information such as an employee's start/leave date after submitted.
Other payroll software is available.
Before you start
You must be registered with HMRC as an employer and have a login for PAYE Online before you can use Basic PAYE Tools.
Use HMRC's guide to downloading and installing the software if you need help getting set up.
Pension contributions
Basic PAYE Tools does not help you work out who to automatically enrol or calculate pension contributions. You need to make sure you calculate pension contributions before using Basic PAYE Tools to make sure the amounts you enter are correct. You are liable to fines if you do not meet your obligations.