- Home
- Payroll Tax Software
- HMRC Basic PAYE Tools
HMRC Basic PAYE Tools
What it is
HMRC Basic PAYE Tools is free payroll software for employers with fewer than 10 employees. It calculates employee tax and National Insurance and sends payroll information to HMRC. Employers can maintain records for up to nine employees, submit Full Payment Submissions and Employer Payment Summaries, and use calculators for statutory sick, maternity, paternity, adoption, shared parental, parental bereavement, and neonatal care pay. The tool can create payslips for saving as PDFs, printing, or emailing with employee agreement. It can also complement commercial payroll software for certain National Insurance number checks or Employer Payment Summary submissions. It runs on Linux, macOS, and Windows. Employers need to register with HMRC and have a PAYE Online login before using it. The software does not support pension auto-enrolment, calculate pension contributions, check pension eligibility, or send information to a pension provider. Employers are responsible for securing and backing up payroll data; HMRC does not retain a copy or recover lost files.
For and against
For
- Free software for employers with fewer than 10 employees.
- Supports records for up to nine employees.
- Calculates several statutory payment types.
- Payslips can be saved, printed, or emailed.
- Available for Linux, macOS, and Windows.
Against
- Does not support pension auto-enrolment or contributions.
- Employers must secure and back up their payroll data.
- Not suitable for agents or bookkeepers.
The verdict
Basic PAYE Tools covers core payroll calculations and submissions for small employers, with payslip creation and statutory payment calculators. Its pension limitations and employer-managed data backups are important to consider.
Who it suits
This tool suits employers with fewer than 10 employees who need to calculate tax and National Insurance and report payroll to HMRC. It is not suitable for agents or bookkeepers, and employers must already have HMRC registration and a PAYE Online login.
Plans and prices
Basic PAYE Tools
For businesses with fewer than 10 employees · Windows, macOS and Linux downloads
Read 21 Oct 2026 · gov.uk
On the record
- Agent limitation
- HMRC says the software is not designed for agents, bookkeepers or payroll bureaus handling multiple employers because payroll data cannot be copied for a single payroll.gov.uk · read 21 Oct 2026
- API platform
- HMRC’s Developer Hub provides RESTful API documentation, application integration guidance and a sandbox for testing tax software.gov.uk · read 21 Oct 2026
- Audience
- It is intended for employers with fewer than 10 employees.gov.uk · read 2 Oct 2026
- Automatic updates
- The software checks for updates automatically, normally when tax-year rules change, and the current published version is 26.1.26134.173934.gov.uk · read 21 Oct 2026
- Current outage status
- The service-availability page reported the full service available with no planned downtime on its 29 September 2026 update.gov.uk · read 21 Oct 2026
- Data backup responsibility
- HMRC says it does not keep a copy of payroll data, so employers are responsible for securing and backing up their database.gov.uk · read 21 Oct 2026
- Data security
- Employers are responsible for securing and backing up payroll data; HMRC does not keep a copy or help recover lost or destroyed data.gov.uk · read 2 Oct 2026
- Documentation depth
- HMRC publishes download, installation, Linux, user-guide, service-availability and network-computer guidance pages for Basic PAYE Tools.gov.uk · read 21 Oct 2026
- Eligibility requirement
- Employers must register with HMRC and have a PAYE Online login before using the software.gov.uk · read 2 Oct 2026
- Employee records
- The setup guide says the software records employee details and pay information.gov.uk · read 21 Oct 2026
- Employer Payment Record
- It produces an Employer Payment Record showing how much the employer needs to pay HMRC.gov.uk · read 21 Oct 2026
- Employer Payment Summary
- The tool can create and send Employer Payment Summaries for situations such as no employee payments, statutory-payment recovery, Employment Allowance and Apprenticeship Levy.gov.uk · read 21 Oct 2026
- Employment Allowance
- The tool helps employers claim Employment Allowance to reduce annual National Insurance liability.gov.uk · read 21 Oct 2026
- Full Payment Submission
- Employers can send Full Payment Submissions reporting deductions and amounts due to HMRC.gov.uk · read 21 Oct 2026
- Hardware requirements
- Minimum hardware is an Intel Core i3/i5/i7/i9 or AMD equivalent, 4 GB RAM, an 80 GB 7200-rpm disk and DirectX 11-capable graphics.gov.uk · read 21 Oct 2026
- Independent update news
- The Chartered Institute of Payroll Professionals reported on 17 April 2026 that the 2026–27 release was available and remained free for employers with 10 or fewer employees.cipp.org.uk · read 21 Oct 2026
- Integrations
- It can be used alongside commercial payroll software to check an employee’s National Insurance number or send an Employer Payment Summary when that software cannot do those tasks.gov.uk · read 2 Oct 2026
- Internet requirement
- An active internet connection is required for payroll submissions, automatic updates, email features and web links.gov.uk · read 21 Oct 2026
