Payroll and PAYE

If your organisation employs staff, you must meet certain payroll, tax and reporting responsibilities. HMRC provides the definitive guidance, so the information below offers a simple overview along with key links for further detail.

Registering as an Employer

Before paying staff, organisations must register with HMRC as an employer and set up a PAYE (Pay As You Earn) scheme. This applies even if you employ only one person or use casual/part‑time staff. Read more on the government website here.

Payroll Management

Many charities use payroll software or an external payroll provider to help manage:

• payslips
• tax and National Insurance deductions
• Real Time Information (RTI) submissions

Payroll systems often integrate with workplace pension schemes to support compliance with auto‑enrolment duties.

Payroll software, including free options are listed here.

Your pension duties – automatic enrolment guidance is available here.

PAYE Reporting

Employers must submit payroll information to HMRC using Real Time Information (RTI) on or before each payday. This ensures HMRC has accurate and timely information about employees’ earnings and deductions.

Reporting payroll information to HMRC is available here.

Employee Documents

Employees must receive certain statutory documents as part of payroll:

• Itemised payslip on or before each payday - more information here
• P60 at the end of each tax year - more information here
• P45 when their employment ends - more information here

Maintaining accurate payroll records helps ensure compliance, transparency and good financial management.

Next Topic: Employment Contracts