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, for example maternity or sick pay
Decide which software features you need
You must get payroll software that reports PAYE information online, unless you’re exempt.
You should also consider which other features you need. For example, some software will not let you:
You can choose from HMRC-recognised payroll software.
HMRC cannot recommend one software product or service over another and is not responsible for any problems you have with software that you’ve bought.
If you change software
Some payroll software will not let you continue with the same employee Payroll IDs if you’ve already used them in other software.
If your payroll software does not let you do this, put ‘Yes’ in the ‘Payroll ID changed indicator’ for each employee in your Full Payment Submission (FPS).
Your PAYE bill may be calculated incorrectly, and payroll records duplicated, if you do not.