Before the first payday
- PAYE scheme registered with HMRC
- Payroll software chosen (HMRC-compatible)
- Bank account for paying staff and HMRC
- Pension scheme set up with NEST, The People's Pension or similar
- Employer's Liability Insurance in place (£5m minimum legal requirement)
- Written employment contracts issued
For each new employee
- Right-to-work check completed and recorded
- Starter declaration (P45 from previous employer, or new starter checklist)
- National Insurance number verified
- Tax code applied (from P45 or HMRC notice)
- Auto-enrolment assessment completed
- Bank details captured for BACS payments
Monthly tasks
- Run payroll on or before payday
- Submit FPS to HMRC on or before payday
- Pay net pay to staff
- Pay HMRC PAYE/NIC by 22nd of following month
- Pay pension contributions to provider
- Issue payslips (legal requirement)
Year-end tasks
- Final FPS for the tax year (by 19 April)
- Issue P60s to all employees by 31 May
- Submit P11Ds for benefits-in-kind by 6 July
- Pay Class 1A NIC by 22 July
Use our payroll readiness checker to score your setup.