1. Overview

If you decide to run payroll yourself, you need payroll software to report to HM Revenue and Customs (HMRC). The software will help you with tasks like:

  • recording your employees’ details
  • working out your employees’ pay and deductions
  • reporting payroll information to HMRC
  • working out how much you need to pay HMRC
  • calculating statutory pay, eg maternity or sick pay

HMRC-recognised software

HMRC tests payroll software to check it can report PAYE information online and in real time (RTI).

You can choose from free payroll software (if you have fewer than 10 employees) and paid-for software that has been tested and recognised by HMRC.

You should consider which features you need. For example, some software won’t let you:

HMRC can’t recommend one software product or service over another and isn’t responsible for any problems you have with software that you’ve bought.