HMRC’s Basic PAYE Tools
One option for running your payroll and sending information to HM Revenue & Customs (HMRC) online, is to use their Basic Pay As You Earn (PAYE) Tools software.
Basic PAYE Tools is HMRC's free payroll software. It is available for people with nine or fewer employees.
The program will:
- record your employees' details
- work out and record your employees' pay, tax, National Insurance contributions (NIC) and any student loan deductions every payday
- generate the reports that you need to send to HMRC in real time, including starter and leaver information
- produce an 'employer payment record' that shows you how much you need to pay HMRC each month
- help you to work out statutory payments such as statutory sick pay and statutory maternity pay using the calculators provided
- allow you to claim the NIC employment allowance
But like some other free basic software, it cannot produce payslips or handle certain other things that a complete paid for payroll package will do as standard, for example help you with automatic enrolment.
However if you do decide to use HMRC’s Basic PAYE Tools (BPT), we have produced a separate payslip tool which you can use alongside BPT to create payslips for your personal assistant (PA). In addition, The Pensions Regulator has a basic assessment tool to help you work out who to automatically enrol or calculate pension contributions for your PA. For more information, see our auto-enrolment page.
HMRC’s Basic PAYE Tools (BPT) is software that you download onto your computer. The downloadable version can be found on GOV.UK. There is no longer a CD version available.
Download the appropriate version for the type of computer you use (Windows PC, Mac or Linux). Provided your computer is compatible, the software should open itself up and start the installation process.
HMRC also offer an assistive mode version of the tool which is designed to be used by employers who use screen reader software. It can also be downloaded from GOV.UK by selecting the windows assistive mode version.
If you need help getting set up, or want to check if your computer can run BPT, you can find a guide on GOV.UK ‘First time users - Download and install Basic PAYE Tools’. It contains examples of the screens you will see in BPT and simple to follow instructions. Please note that due to continuing improvements, the screens in BPT may look slightly different to those shown within the guide.
If you encounter a technical problem with installing BPT, you can contact HMRC’s Online Service Helpdesk on 0300 200 3600. For customers who are deaf or hard of hearing or speech impaired the number is 0300 200 3603 (Textphone).
When the set-up process is complete, open the BPT icon from your desktop. You will need to add your employer and employee information into BPT, before you’ll be ready to use the tool fully – again please refer to the user guide ‘First time users - Download and install Basic PAYE Tools’ which will show you how to set up the employer and employee information.
Once up and running, BPT should check for updates automatically, usually when the tax year changes or new rules come in. However, there is no harm in double checking regularly that you are using the latest version. To do this, check that your computer is connected to the internet then open BPT. Select 'Settings' then 'Update' then 'Check now'. If an update is available, accept the prompt to take the update. Occasionally, you may need to download the program again to access updates, as outlined in our news piece on the LITRG website.
You can find HMRC’s BPT User Guide here on GOV.UK.
It contains step-by-step help on the most common functions of BPT, answers to some frequently asked questions and screenshots of the main screens you need to know about.
The full collection of guidance on using Basic PAYE Tools can be found on GOV.UK and also includes:
Downloading and installing Basic PAYE Tools
Running payroll with Basic PAYE Tools
Using Basic PAYE Tools alongside other payroll software
You can check the availability and any issues affecting BPT and HMRC's PAYE for Employers online service on GOV.UK.
If you encounter a problem with using BPT, you can contact HMRC’s Online Services Helpdesk on 0300 200 3600. For customers who are deaf or hearing or speech impaired the number is 0300 200 3603 (Textphone).
HMRC's BPT does not create a payslip. However, we have developed a payslip tool that can be used in conjunction with HMRC’s software. You can find the tool in the payslip tool section. You can find out more general information about payslips in the payslip section.