Pension Requirements
A blog by SALC Payroll Officer, Charlotte Haines

HMRC's basic PAYE tools is free payroll software from HMRC for businesses with fewer than 10 employees.  

  • The software is used to calculate an employee's tax and National Insurance.

  • Checks National Insurance numbers.

  • Sends information such as payment information, Employer Payment Summaries (EPS) and Earlier Year Updates (EYU).

A step-by-step guide on how to use Basic Tools is available to download in PDF format using this link. 

Basic tools has some limitations, such as:

  • it does not produce payslips.

  • It does not record any other deductions unrelated to PAYE (pay as you go) such as an attachment or earnings.

  • It does not support the change of information such as an employee's start/leave date after submitted.

It is also important to know that:

  • HMRC 'does not help you work out who to automatically enrol or calculate pension contributions.  You need to make sure you calculate pension contributions before using Basic PAYE Tools to make sure the amounts you enter are correct.  You are liable to fines if you do not meet your obligations.' HMRC

  • 'You are legally required to provide a workplace pension for certain staff, which you must also pay into.'  - HMRC.  More details on your obligations can be found using this link.

Holiday entitlement for employees
A blog by SALC Payroll Officer, Charlotte Haines