PAYE & Payroll Knowledge Base

What Is PAYE?

The basics of Pay As You Earn: how employers collect tax and NI on behalf of HMRC.

How PAYE Works (Employer Obligations)

Everything an employer needs to do: register, calculate, deduct, report, and pay.

Registering as an Employer

How to register with HMRC before your first payday — step by step.

PAYE Reference Numbers & Accounts Office

Understanding your Employer PAYE Reference and Accounts Office Reference numbers.

PAYE for Single Directors

Running PAYE when you are the only director and employee of your company.

How Tax Codes Work

What the numbers and letters in a tax code mean and how HMRC assigns them.

Common Tax Codes Explained

1257L, BR, 0T, K codes, D0, D1 — what the most common codes mean for your pay.

Emergency Tax Codes

Why you might be on an emergency code and how to get it corrected.

Cumulative vs Week 1 / Month 1

The difference between cumulative and non-cumulative tax code operation.

Checking & Correcting Your Tax Code

How to check your code online and what to do if it is wrong.

Real Time Information (RTI) Overview

What RTI is and why every employer must report payroll data electronically.

Full Payment Submission (FPS)

The core payroll submission: what it contains, when to send it, and common pitfalls.

Employer Payment Summary (EPS)

When and how to submit an EPS for recoveries, allowances, and nil-payment months.

Earlier Year Updates (EYU)

How to correct payroll data from a previous tax year.

Aligning RTI with Pay Periods

Matching weekly, fortnightly, and monthly pay runs to HMRC tax periods.

Payslip Legal Requirements

What every employer must include on a payslip by law.

Statutory Deductions (Tax, NI, Student Loan)

How Income Tax, NI, and student loan repayments are calculated and deducted.

Attachment of Earnings Orders

Employer obligations when a court order requires deductions from pay.

Pension Auto-Enrolment Deductions

Minimum contributions, qualifying earnings, and employer duties.

Payroll Giving (Give As You Earn)

Tax-free charitable donations taken directly from gross pay.

Statutory Sick Pay (SSP)

Paid from day one at the lower of £123.25 a week or 80% of average weekly earnings, for up to 28 weeks: eligibility, qualifying days, and employer duties.

Statutory Maternity Pay (SMP)

39 weeks of SMP: 90% of AWE for 6 weeks, then the flat rate or 90% (whichever is lower).

Statutory Paternity Pay (SPP)

Up to 2 weeks of SPP for eligible fathers and partners.

Shared Parental Pay (ShPP)

How parents can share up to 50 weeks of leave and 37 weeks of pay.

Statutory Adoption Pay (SAP)

39 weeks of SAP for eligible adopters: rates and qualifying conditions.

P60 Explained

What a P60 is, when it must be issued, and what employees should keep it for.

P11D & Benefits in Kind

Reporting expenses and benefits to HMRC: deadlines, Class 1A NI, and payrolling.

Payroll Year-End Checklist

Everything to do between March and July to close the payroll year correctly.

Final FPS & Year-End Returns

Flagging your last submission and reconciling your PAYE account with HMRC.

The P45 Process

Issuing a P45 when an employee leaves and processing one for a new starter.

Starter Checklists (New Employee Without P45)

Statements A, B, and C: which tax code to use when there is no P45.

Calculating Final Pay (Leavers)

Pro-rating salary, accrued holiday, notice pay, and issuing the final payslip.

PAYE Thresholds & Rates 2026/27

Income Tax bands, NI thresholds, student loan rates, and pension limits at a glance.

Key Payroll Dates Calendar

Tax months, RTI deadlines, payment due dates, and year-end milestones.

Payroll Glossary

Plain-English definitions of PAYE terms: FPS, EPS, RTI, P45, P60, and more.