Payroll and benefits

As well as your legal obligations, you’ll want to ensure that payroll is painless and that you use any opportunities to improve your tax-efficiency.

Payroll and benefits - overview

If you have employees, you'll almost certainly be required to operate PAYE to collect income tax and NI contributions. Our guide to the basics.

Male employee in a suit with two hands on the steering wheel driving a car

Employee benefits and tax

Employee benefits can be complicated. You need to ensure that your payroll systems deal with employee benefits properly and report in real time.



You are legally obliged to operate PAYE for any employee with an income above the lower earnings limit.

Time sheet for calculating payroll


HMRC expect you to file pay information accurately and on time - and employees also won't be happy if they aren't paid correctly. Managing payroll.

Man in a suit sat at a desk handing an employee an employment allowance slip

Employment Allowance

The Employment Allowance reduces the amount of employer’s Class 1 NICs payable. Find out how it works, who qualifies and how to claim.

Car fuel guage - Mileage allowance tax rates

Q&A: Mileage allowance tax rates

Tony Shanks of Tax Rebate Services provides useful advice on how to make sure you and your employees aren't missing out on mileage tax allowances.

Group of construction workers in high-vis vests and white hard hats on site

Construction Industry Scheme

The Construction Industry Scheme (CIS) affects businesses involved in construction and some businesses which spend large amounts on construction.

Man in a suit smiling at the camera while driving his company car

HMRC company car tax calculator

When a company car or van or fuel for private use is made available to an employee, there is deemed to be a benefit in kind, ie you pay tax on it.

Man in a blue shirt calculating his tax with a stack of money beside him

HMRC Tax checker tool

You can visit the HMRC website to use a handy online tool to check whether employees have paid too much income tax under the PAYE scheme.


Payslip checker tool

To ensure payslips show the right information, including tax and NI deductions, visit the UK Tax Calculators website to use an online payslip checker.