HMRC Basic PAYE Tools is free payroll software for employers with fewer than 10 employees. It calculates employee tax and National Insurance, then sends payroll information to HMRC. Employers can record up to 9 employees and submit Full Payment Submissions and Employer Payment Summaries. Calculators cover statutory payments such as sick, maternity, paternity, adoption, shared parental, parental bereavement and neonatal care pay. The software can create payslips for saving as PDFs, printing or emailing with employee agreement. It can also be used alongside commercial payroll software for certain National Insurance number checks or Employer Payment Summary submissions. HMRC registration and a PAYE Online login are required before use. The software runs on Linux, macOS and Windows. It does not support pension auto-enrolment, calculate pension contributions, check pension eligibility or send information to a pension provider. Employers are responsible for securing and backing up their payroll data; HMRC does not keep a copy or recover lost files.
Who it is for
This tool may suit employers with fewer than 10 employees who are registered with HMRC and have a PAYE Online login. It is not suitable for agents or bookkeepers.
What is good
- Free payroll software for employers with fewer than 10 employees.
- Keeps records for up to 9 employees.
- Submits Full Payment Submissions and Employer Payment Summaries.
- Creates payslips that can be saved as PDFs.
- Available for Linux, macOS and Windows.
What to know first
- Does not support pension auto-enrolment or contributions.
- Employers must secure and back up payroll data.
- Not suitable for agents or bookkeepers.
Verdict
HMRC Basic PAYE Tools covers payroll calculations, reporting and payslips for small employers. It does not handle pension tasks, and employers must manage their own payroll data security and backups.
HMRC Basic PAYE Tools plans and pricing
All plansCompared on payroll tax software
- Free plan
- Yes
- Tax filing
- Yes
- Tax payment support
- Yes
- Tax form preparation
- Yes
- Tax reconciliation
- Yes
- Year-end forms
- Yes
