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Top Payroll Software Recognized by the HMRC

Here are some of the top HMRC payroll software solutions for your UK business to consider.

The HMRC stands for “Her Majesty’s Revenue and Customs” – this is part of the revenue department of the UK government. They help to manage several important facets of the British budgetary and monetary issues; they are the group responsible for the collection of taxes, the payment of some forms of state support, and administering other regulatory functions including the national minimum wage.

Payroll is a crucial part of running taxes and administering wages, therefore understanding effective and compliant payroll software is important for those who run any payroll operations inside the UK. The first step to legally running a business is to register your company and set up PAYE. According to the UK Government site, PAYE is “HM Revenue and Customs’ (HMRC) system to collect Income Tax and National Insurance from employment.” PAYE helps your employers understand what deductions need to be made and paid to HRMC, including expenses and benefits.

The HMRC tests payroll software to ensure that it can report PAYE information online and in real time (RTI). Those companies with fewer than ten employees can elect to use free payroll software, while those with 11 or more need to use a paid software solution. The right software will ensure compliance and help employers with:

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

Here are some of the top HMRC payroll software solutions for your UK business to consider.

Top free HMRC approved payroll software

1. EnrolPay

The free payroll version of EnrolPay is good for UK companies with up to ten employees. It offers the say user-friendly interface as their full paid version and can handle at RTI submission. Additionally, Electronic payslips can be easily be generated.

2. HMRC Basic PAYE

HMRC Basic PAYE: The HMRC has its own payroll that enables your team to perform basic payroll tasks, such as working out tax and National Insurance for the employee, as well send that info to HMRC. While it can’t be used to produce payslips it can also be used as an add-on to an existing payroll to help with:

  • confirming a new employee’s National Insurance number (NVR)
  • sending Employer Payment Summaries (EPS)
  • sending an Earlier Year Update (EYU)

3. 12 Cloud Payroll

12 Cloud Payroll has both a free and paid version for employers and their free version is a great option for companies with ten or fewer employees. This cloud-based payroll software assures that calculations for payroll and pensions are fully complying with HMRC’s statutory standards.

4. KashFlow Payroll

KashFlow Payroll is another HMRC payroll software solution that keeps UK businesses compliant. This cloud-based payroll software is accessible online, including from mobile devices. It helps businesses process payroll quickly and securely, and also secure and automatically files RTI submissions, keeping you compliant with auto-enrolment regulations.

Top paid HMRC approved payroll software

1. PayFit

PayFit offers integrated payroll solutions in HR management software. As they are HMRC certified and can automate everything from RTI submissions and employee payslips to leaves and expenses.

2. Account on This

Account on This software is a contracting software that UK business accountants can use to handle and manage payroll and compliance. Accountants who work as contractors to help keep payroll rolling for companies use this cloud-based, HMRC payroll software to support all their pay and compliance needs for clients.

3. BrightPay

BrightPay is an HMRC approved software that offers businesses a free 7-day trial so businesses can test their features, easy employee imports, unlimited payments with additions and deductions on payslips, the ability to pay different employees on different dates, and flexible reporting options to see any payroll information at any time.

4. Brain Payroll

Brain Payroll helps UK businesses streamline payroll processes and simplify payroll functions and deductions. It offers two platforms: single company mode for small companies and multiple company mode for large and/or multi-company payroll outsourcers. In addition to being GDPR compliant, their high-speed payroll engine which does 1 million payroll calculations in seconds and automates every payroll task from timesheets to payslips. With true multi-company and bulk processing features, it helps businesses save between 30% and 60% of the payroll processing cost.

Payroll compliance is critical; it helps to save businesses both hassle and potential fines – or worse. As important as it is, it doesn’t have to be confusing. Pre-vetted HMRC payroll software helps businesses with the important work of running payroll, staying organized, and operating efficiently.

Whether you have a small team or a larger company, the HMRC makes payroll easier. Using pre-approved HMRC payroll software means you’ll be working with a system that can help your business worry less about compliance and regulations and focus more on relationships with employees and customers.

Marianne Chrisos
Marianne Chrisos
Born in Salem, Massachusetts, growing up outside of Chicago, Illinois, and currently living near Dallas, Texas, Marianne is a content writer at a company near Dallas and contributing writer around the internet. She earned her master's degree in Writing and Publishing from DePaul University in Chicago and has worked in publishing, advertising, digital marketing, and content strategy.
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