Payroll & auto-enrolment.
PAYE, Real Time Information submissions, statutory pay, and workplace pensions. Every UK employer has to get these right, and HMRC, The Pensions Regulator and your staff can all penalise you if you do not.
Real Time Information
Full Payment Submissions must reach HMRC on or before pay day. Late Real Time Information filings can lead to penalties.
Jump to section 02Statutory pay
SSP, SMP, SPP and ShPP each have their own trigger, rate and recovery mechanism. The payroll record needs to show the calculation.
Jump to section 03Auto-enrolment duties
Every UK employer must enrol eligible workers. Minimum 8% of qualifying earnings with at least 3% from you. Non-compliance is fined.
Jump to section 04Single-director rule
Solo director companies still have auto-enrolment duties, assessment and declaration of compliance are mandatory even with no staff.
Jump to sectionEmployer obligations
Every UK employer running payroll must file Full Payment Submissions (FPS) with HMRC on or before pay day, manage statutory pay entitlements (SSP, SMP, SPP, ShPP), and operate PAYE to deduct income tax and National Insurance at source. Under RTI, payroll cannot be processed retrospectively, it must happen in real time.
Auto-enrolment
Since 2012, every UK employer has been required to automatically enrol eligible workers into a qualifying workplace pension scheme. The minimum contribution is 8% of qualifying earnings, with at least 3% coming from the employer. Non-compliance triggers enforcement action from The Pensions Regulator, including escalating fines.
Even single-director companies with no other employees have auto-enrolment duties, they must still assess and declare compliance.
What to check before the first payroll run
Before the first pay date, the employer PAYE scheme needs to be active, staff details need to be complete, and each employee should have the right tax code, National Insurance category and pension status. Director payroll also needs its own treatment because annual earnings methods are often used.
The payroll record should agree to the accounts. Gross pay, employer National Insurance, pension contributions, student loan deductions, statutory pay and payroll journals all feed the year-end accounts and Corporation Tax calculation.
More payroll guides
Auto-Enrolment Guide for Small Employers
Auto-enrolment duties for small employers, including staging, postponement, contributions, worker letters and pension scheme records.
GuideDirector-Only Payroll Guide
How director-only payroll works for UK companies, including annual schemes, Real Time Information submissions and salary planning.
GuideReal Time Information Payroll Penalties
How Real Time Information payroll penalties arise, what HMRC checks and how small employers can keep submissions on time.
GuideStatutory Pay Guide for Small Employers
A guide to statutory pay for small employers, including sick pay, maternity pay, paternity pay, recovery rules and payroll records.
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