PAYE Management UK —
Complete Employer Tax Compliance
Complete PAYE management for UK employers — new starters, leavers, tax code changes, employer NIC calculations, PAYE payment scheduling and full HMRC correspondence handled on your behalf. Never worry about PAYE again.
What Is PAYE Management?
PAYE (Pay As You Earn) is HMRC’s system for collecting income tax and National Insurance from employees via their employer. As an employer, you are responsible for calculating, deducting and paying over the correct amounts to HMRC — and for keeping HMRC informed of every change in your workforce. PAYE management handles all of this for you.
Every time you hire or lose an employee, receive a tax code change notice, process a student loan or deal with an attachment of earnings — PAYE management handles it. We act as your HMRC payroll agent, meaning HMRC contacts us directly with any notices or queries and we deal with them on your behalf.
PAYE compliance goes beyond just running the payroll. Employer NIC planning is an area many businesses overlook — Employment Allowance (up to £5,000/year for eligible employers), the Employment Allowance for veterans and the NIC holiday for armed forces veterans are all legitimate reliefs we identify and claim automatically.
We also handle PAYE settlement agreements (PSAs) for non-cash benefits, expenses and other items that fall outside the P11D regime — ensuring every aspect of your employer tax obligations is met correctly and efficiently.
✅ What’s Included
- ✓ New starter setup (P45 / new starter checklist)
- ✓ Leaver processing & P45 issue
- ✓ Tax code changes — applied immediately
- ✓ Emergency tax code management
- ✓ Employer NIC calculation
- ✓ Employment Allowance claim
- ✓ Student loan deduction management
- ✓ Attachment of earnings orders
- ✓ PAYE liability schedule & reminders
- ✓ HMRC correspondence handled
- ✓ End-of-year reconciliation
- ✓ Employer Annual Return (EPS filing)
PAYE — Key Facts Every Employer Needs
PAYE Management — Common Questions
You must register for PAYE with HMRC before your first payday if you pay any employee more than the lower earnings limit (£123/week in 2024/25), provide employees with taxable expenses or benefits, or employ anyone who has another job or receives a pension. We register you for PAYE as part of our onboarding and ensure all setup is correct from day one.
Employment Allowance allows eligible UK employers to reduce their employer Class 1 NIC bill by up to £5,000 per tax year. Most UK employers qualify, but there are exclusions — single-director companies with no other employees, domestic care workers, and employers whose NIC liability was £100,000 or more in the previous tax year. We check your eligibility and claim Employment Allowance automatically on your behalf.
When you hire a new employee, you need their P45 from their previous employer (or complete a new starter checklist if they don’t have one), assign them to the correct tax code, add them to your payroll and submit an RTI FPS notification to HMRC on or before their first pay date. We handle all of this — just notify us of the new starter details and we do everything else within 24 hours.
HMRC sends P6 and P9 tax code change notices electronically when an employee’s tax code changes — typically because of a change in their tax position, benefits or personal allowance. As your HMRC payroll agent, we receive these notices directly, apply the new tax code from the correct date and ensure the change is reflected in your next payroll run. You’re notified of any significant changes.
An Employer Payment Summary (EPS) is filed with HMRC to notify them of any adjustments to your PAYE liability — claiming Employment Allowance, recovering Statutory Maternity/Paternity Pay, or notifying HMRC of a nil payment period. It must be submitted by the 19th of the following month. We file EPS submissions automatically whenever they’re required as part of your monthly payroll service.
PAYE Compliance — Completely Handled
Book a free consultation and we’ll take over all your PAYE management — starters, leavers, tax codes, NIC and HMRC correspondence. Fixed fee, zero penalties.
Which Businesses Need This Service?
Growing Businesses Adding Staff
Every new hire triggers PAYE obligations — starter forms, tax code setup, RTI notification. Businesses hiring regularly need PAYE management that handles each new employee correctly from day one.
Businesses with Complex Workforce Structures
Companies with a mix of directors, employees, agency workers and zero-hours workers need PAYE management that correctly classifies and treats each worker type — avoiding costly misclassification issues.
Businesses with International Employees
UK companies employing workers who live or have worked overseas need expert PAYE management — expatriate payroll, social security treaties, shadow payrolls and HMRC Short-Term Business Visitor arrangements all require specialist knowledge.
Businesses Switching Payroll Provider
Changing payroll provider mid-year requires careful handling of year-to-date figures, PAYE references, employee records and HMRC agent authority. We handle every transition seamlessly within 5 working days.
4 Costly Mistakes — And How Britvex Prevents Them
Misclassifying workers as self-employed when HMRC would deem them employed is one of the most significant payroll compliance risks. HMRC has recovered billions in unpaid PAYE and NIC from businesses that incorrectly treated workers as contractors. We review employment status for all workers and advise on the correct classification — protecting you from HMRC retrospective assessment.
New starters without a P45 must complete a new starter checklist — failure to do this correctly means the wrong tax code is applied from day one. New starters who don’t complete a checklist default to emergency tax code (1257L W1/M1), which may overtax them and create issues. We process every new starter correctly within 24 hours of notification.
HMRC sends P6 and P9 tax code notices electronically throughout the year. Many businesses miss these notices — meaning employees continue to pay tax on the wrong code, leading to either underpayment (HMRC debt) or overpayment (employee dissatisfaction). As your HMRC payroll agent, we receive and process every tax code notice immediately.
PAYE is due to HMRC by the 19th of the following month (cheque) or 22nd (electronic). Late payment attracts automatic interest charges from day one and penalty notices for persistent late payers. We provide you with the exact PAYE liability figure after each payroll run and send payment reminders 5 days before the deadline.
Fixed Fees — Agreed Upfront, No Surprises
Every Britvex fee is fixed and agreed before we start. No hourly rates, no surprise invoices. Book a free consultation for your exact quote.
All packages include: dedicated accountant · HMRC agent · client portal · 2-hour response guarantee.
The Law That Applies to You
PAYE Regulations 2003 (SI 2003/2682) — the detailed PAYE regulations set out exactly how employers must operate PAYE — calculating deductions, maintaining records, making returns and paying HMRC. Failure to comply can result in HMRC using estimated assessments and charging penalties on estimated tax.”),
Employment Allowance (National Insurance Credits) Act 2014 — introduced Employment Allowance allowing eligible employers to reduce their employer NIC bill by up to £5,000 per tax year (2024/25). Single-director companies without other employees are excluded, as are employers whose NIC liability exceeded £100,000 in the previous year. We assess eligibility and claim the allowance automatically.
IR35 / off-payroll working (ITEPA 2003, Chapter 10) — the off-payroll working rules require medium and large organisations to determine the employment status of contractors engaged via personal service companies. Where a contractor is deemed inside IR35, the fee payer must operate PAYE on the deemed employment income. We advise on and implement the correct PAYE treatment for all IR35 scenarios.
GDPR payroll data requirements — payroll data is sensitive personal data under UK GDPR. Employers must handle payroll records securely, retain them for the required period (typically 3 years for PAYE purposes, longer for pension records) and delete them securely when no longer required. Our payroll systems are UK GDPR compliant with appropriate security controls and retention policies.