Guide
A Complete Guide to Payroll in the UK
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From HMRC registration and Full Payment Submissions to National Living Wage guidelines and jurisdictional income tax bands, running payroll in the UK requires a deep understanding of the local requirements.
This guide equips you with a foundational understanding to improve efficiency, compliance, and accuracy in managing your workforce, including:
- Essential UK payroll regulations and their impact on your business
- Step-by-step guide to setting up and running payroll, including registration, employee onboarding, and payment processing
- Key considerations for calculating deductions and contributions, including taxes, National Insurance, and pensions
- Options for compliant record keeping and tax documentation
- Different approaches to managing payroll in-house or outsourcing to a provider
Who is this guide for?
- Business owners of all sizes, from startups to established companies
- HR and finance professionals responsible for employee payroll
- Anyone who wants to gain a solid understanding of UK payroll
FAQs
What is PAYE and how does it work?
PAYE (Pay As You Earn) is the system HMRC uses to collect Income Tax and National Insurance contributions from employees' pay. Employers need to deduct these amounts from employees' wages and pay them to HMRC.
How do I register as an employer with HMRC?
Before running payroll, you must register as an employer with HMRC. This can be done online, and you'll receive an employer PAYE reference number and an Accounts Office reference.
What is RTI and how do I submit it?
RTI (Real Time Information) is the system employers use to send payroll information to HMRC every time they pay employees. Submissions are made using payroll software that is RTI-compliant.
What are the different types of statutory payments in the UK and how are they processed?
Statutory payments include Statutory Sick Pay (SSP), Statutory Maternity Pay (SMP), Statutory Paternity Pay (SPP), and Statutory Adoption Pay (SAP). Each type has specific eligibility criteria, rates, and processes for payment.
How can Deel help me run UK payroll?
With Deel, your business can easily hire independent contractors and employees in the United Kingdom. No more worrying about local laws, complex tax systems, or managing international payroll. The average onboarding time frame in the United Kingdom is 7 days with Deel.
Plus, Deel Global Payroll enables you to manage your UK and international workforce all within one platform.
