Compliance
UK payroll legislation: what employers need to know
UK payroll legislation is detailed — with strict rules around PAYE, pensions, statutory entitlements, and data protection. We remove the stress by running your payroll accurately and in line with HMRC requirements — giving you peace of mind and your employees the confidence of being paid correctly every time.
- Run PAYE to collect Income Tax and National Insurance Contributions (NICs).
- Report payroll data to HMRC in Real Time (RTI) every payday.
- Late or inaccurate submissions can result in HMRC penalties.
- Pay at least NMW/NLW depending on age and status.
- Rates are updated every April.
- Strict enforcement and potential penalties for underpayment.
- Employees must receive an itemised payslip each pay period.
- Protects rights around pay, deductions, and notice periods.
- Employees are entitled to 5.6 weeks of paid annual leave (pro rata).
- Maximum working hours: 48 hours per week on average (unless opted out).
- Holiday pay case law can affect calculations (e.g., overtime/commission).
- Statutory Sick Pay (SSP)
- Statutory Maternity Pay (SMP)
- Statutory Paternity, Adoption, and Shared Parental Pay
- Some statutory payments may be recoverable via HMRC schemes.
- Automatically enrol eligible employees into a workplace pension.
- Minimum contributions apply to qualifying earnings.
- The Pensions Regulator enforces compliance and can issue fines.
- Requires equal pay for equal work, regardless of gender or protected characteristics.
- Employers must avoid discriminatory pay practices.
- Payroll data is personal data and must be stored and processed securely.
- Comply with GDPR principles: lawfulness, fairness, transparency, and security.
- Governs benefits-in-kind (e.g., company cars, medical insurance).
- Employers must submit P11D forms annually for benefits where applicable.
- Applies to employers with annual pay bills over £3 million.
- Levy charged at 0.5% of total pay bill, paid via PAYE.
- Special tax scheme for construction contractors and subcontractors.
- Contractors must deduct money from subcontractors’ pay and pass it to HMRC.
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Based in Dungannon · Supporting businesses across the UK