We have developed a payslip tool that you can use with HMRC Basic PAYE Tools to create a payslip. While our website hosts the payslip tool, no data can be seen in any way whatsoever by us and no data is saved within the program.
How to use this tool
Saving payslips to a dedicated payslip folder
How can I email a copy of the payslip to my employee?
Why don’t my employee’s pension contributions show up on the payslip?
Creating a desktop link to the payslip tool
After you have completed your payroll process using HMRC Basic PAYE tools (BPT), under the Manage Employees tab, select the employees you want to create a payslip for.
Then select the Employee payments option at the top of the left hand menu.
You will then see a list of the employee payments you have made, and three choices – View, Change and Export to csv.
Choose 'Export to csv'. (Please note that BPT only allows you to 'export to csv' for the current pay period. It is set up like this because strictly, an employee should receive their payslip on or before their pay-date. Once the next pay period has been "run" the export to csv option will not appear alongside any earlier pay periods.)
The next screen should ask you where on your computer you want the file to be saved – navigate to the place that you want on your computer and then save the file.
It may be an idea to have a folder specifically for payslips: if you want to know how to do that, follow the guidance below.
In any case, you may want to make a note of where the file has been saved so that you can easily find it again.
Now go to the 'Browse' button in the blue 'select your csv file' box above. Your computer will open your list of files.
Select the file you saved in the previous step.
Select the red 'Create payslip' button.
Your payslip has been created and you can print it off in the format that suits you best to give to your employee.
If you are using our payslip tool it may be an idea to keep all your employees’ payslips in a dedicated folder. This may make it easier to find them all.
To do this, go through the BPT ‘Export to csv’ process, as outlined above.
Instead of just saving the file to your chosen place, you could look for an option that says something like ‘new’ --> ‘folder’ (precisely what you have to do will depend on what computer you have but often if you right click on an open space then a menu with this option will come up).
Click to set up a new folder and call it ‘Payslips’ or something of your choice. This will create a new folder and then you can save your payslip file to this folder.
You may then be able to add the folder to your ‘Favourites’ (if you have this facility) which should make finding it in future a bit easier.
Once you have generated your payslip you may want to send it to your employee via email rather than print it out and give it to them.
You may have noticed that our payslip tool only has a ‘Print payslip’ option however it is possible to use this to create a new PDF file on your computer which you can then email, instead of printing it to a physical document.
If you are using an Apple Mac, are using Windows 10 or have a programme like Adobe Acrobat already installed on your computer, you should have a default print to PDF function available:
- Once you have clicked ‘Print payslip’ look for the option that says something like ‘print to pdf’ or ‘adobe pdf’ in the drop down printer list and then click “Print” to convert the file to PDF.
- You should then be asked where you’d like to save the PDF document. Simply choose the location on your computer where you’d like to store it, give it a name, and click “Save” to create your PDF.
Other Windows systems may not have a built in PDF printer. Instead however, you should be able to print to the Microsoft XPS Document Writer printer to create an XPS file from the document (Microsoft’s version of PDF).
This in itself, may suit your needs although please note that as XPS files are not as well-known as PDFs, it may look unfamiliar to the recipient and/or they may not be able to open it easily. Therefore, you have a couple of simple options:
- You can install a free PDF printer to add to your list of printers. You can choose from a variety of free PDF printers available online – although be very careful about downloading any random add-ons during installation (check any boxes you are asked to tick/untick carefully). Then you can follow steps 1 and 2 above.
- If you are unable to install a PDF printer on your computer, you can create an XPS file from the document. Free web-based converters that you do not need to download/install, are then available if you want to create a PDF using your XPS file. Again, an online search should provide you with plenty of options but again, watch out for downloading and installing and unwanted add-ons during the conversion process. Then you can follow step 2 above.
BPT is a very basic tool - it calculates tax and NIC on an employee's pay and that is about it.
When it comes to pension contributions, there are two ways that an employee can contribute to a pension:
- Under 'net pay arrangements' - where the pension amount is deducted BEFORE tax is calculated (meaning the employee receives tax relief there and then)
- Under 'relief at source' arrangements - where the pension contribution is deducted after tax is calculated and HMRC later send the tax relief to the pension scheme.
Because an employee’s tax amount is only affected by pension contributions made under net pay arrangements – BPT only ‘covers’ net pay arrangements, despite the roll-out of the auto enrolment programme (which can involve either type of contribution).
The 'net amount' as calculated by BTP is therefore based on:
- Pay including statutory payments and payrolled benefits in kind, Less
- Employee pension contributions under net pay arrangements, Less
- Tax, National Insurance contributions and student loan repayments
Because the relief at source pension contribution field is not taken into account when calculating the ‘net amount’ per BPT, it does not flow through to our payslip tool. (The field is only there in the first place because employers have to report pension deductions to HMRC under the RTI requirements.)
If your employee makes relief at source pension contributions, in line with the guidance on payslips, you need to make the appropriate adjustments to the payslip by hand to reflect all the deductions and the true take home pay position. Alternatively it may well be acceptable to provide your employee with a separate written statement to the payslip, outlining the pension deductions. A body like ACAS should be able to advise you further on this.
It is our understanding that HMRC have no intention to extend BPT to handle any further aspects of auto enrolment, so we do not expect to be able to ‘upgrade’ our payslip tool any time soon.
If you visit the payslip tool a lot, then you could do something like add the web page to your ‘Favourites’ or use a desktop shortcut to make the payslip tool easier to find.
Your exact options will depend on what type of system you have. But, usually creating a desktop shortcut involves something like the following: copy the address of this page and right click on the desktop in an open space. Click on New --> shortcut. Paste the address into the box that will appear, and press OK. Give it a name and then press finish. Now go to your desktop – there should be a new icon that resembles our DTG icon for your newly created shortcut.