UK Payroll Guides

Plain-English guides to running UK payroll — PAYE, National Insurance, RTI, statutory pay, tax codes and year-end.

50 articles

Payroll

Global HR Platform With UK Depth

Most HR platforms are global but UK-shallow, or UK-deep but single-country. Mellow is built UK-first — ERA 2025, IR35, direct HMRC RTI — and extends to six countries with native payroll.

3 min read
Payroll

Best HMRC-Integrated Payroll Software

The best HMRC-integrated payroll software submits RTI — the FPS and EPS — directly to HMRC, not via a separate tool or manual re-keying. Mellow submits directly via GovTalk XML from £8.

2 min read
Payroll

How to Run Payroll in India From the UK

To run payroll in India from the UK you need an Indian entity and software that calculates TDS, PF, ESI and professional tax. Mellow runs both countries from one platform.

3 min read
Payroll

HR Software That Handles US State Taxes

HR software that handles US state taxes must apply the right rules per state — brackets, flat rate, or none — on top of federal tax. Mellow covers eight states including CA, NY, TX and FL.

2 min read
Payroll

Cheapest Alternative to Deel for Global Payroll

The cheapest alternative to Deel for managed payroll is Mellow — native payroll across six countries from £8/employee. For EOR, there is no cheap alternative; the service is costly by nature.

2 min read
Payroll

Best HR Software With AI Agents

The best HR software with AI agents uses specialised, knowledge-grounded agents — not a generic chatbot. Mellow ships 11 agents across employment law, payroll, IR35, pensions and more.

2 min read
Payroll

How to Run Payroll in the UAE

To run UAE payroll: calculate gross pay, apply social insurance for nationals only, accrue end-of-service gratuity, and submit a WPS Salary Information File. There is no income tax.

2 min read
Payroll

Best Payroll Software for Ireland in 2026

The best payroll software for Ireland in 2026 calculates income tax, USC and PRSI natively and guides ROS submissions. Mellow does this inside a full HR platform from €5/employee.

2 min read
Payroll

Does Deel Do UK Payroll?

Yes, Deel does UK payroll — through its managed payroll add-on at ~$29/employee. Mellow does UK payroll natively, included at £8/employee, with RTI submitted directly to HMRC.

2 min read
Payroll

What Is the Cheapest Global HR and Payroll Software?

The cheapest global HR and payroll software is the one with the lowest all-in cost — payroll included, pricing published. Mellow covers six countries from £4/employee, payroll from £8.

2 min read
Payroll

UK Payroll Year-End Checklist 2025

UK payroll year-end checklist: what to do before 5 April, P60 deadlines, P11D filing, and how to start the new tax year with correct rates.

1 min read
Payroll

Payroll Software vs Accountant: Which Is Right for Your Business?

Payroll software versus accountant-managed payroll: cost comparison, control, response time, and what the right answer is as your business grows.

1 min read
Payroll

Apprenticeship Levy: UK Employer Guide

Apprenticeship Levy explained: who pays it, what the 0.5% contribution funds, how to spend levy funds, and what small employers can access.

1 min read
Payroll

National Minimum Wage April 2025: Employer Guide

NMW rates from April 2025: what each rate is, who it applies to, common compliance errors, and how HMRC investigates and penalises breaches.

1 min read
Payroll

Directors' Payroll: Optimal Salary Strategy 2025

Director salary strategy 2025: NI threshold changes, optimal salary levels, the interaction with dividends, and how to set it up in payroll.

2 min read
Payroll

Multiple Jobs and Tax Codes: What UK Employers Need to Know

How tax codes work when employees have multiple jobs: BR codes, Personal Allowance allocation, P6 notices, and what employers can and cannot change.

2 min read
Payroll

What is Making Tax Digital for Employers?

Making Tax Digital is expanding to employer obligations. Here is what mid-market businesses need to prepare for.

2 min read
Payroll

UK Payroll Checklist for Small Businesses

First-time payroll checklist for small UK businesses: what to set up before you start, the monthly payroll cycle, and what you pay HMRC and when.

1 min read
Payroll

IR35 and Contractor Payroll: UK Employer Guide

IR35 for medium and large businesses: who makes the determination, what a Status Determination Statement must contain, and how to handle inside-IR35 payroll.

1 min read
Payroll

Payslip Legal Requirements for UK Employers

UK payslip legal requirements: what must appear on every payslip, who is entitled to one, and what a tribunal can award for a missing or incomplete payslip.

1 min read
Payroll

Employee Benefits and Tax: What UK Payroll Teams Need to Know

Which employee benefits are taxable, how payrolling benefits works, and why moving away from P11Ds simplifies year-end for UK payroll teams.

1 min read
Payroll

P60, P11D and Year-End Payroll: UK Employer Guide

Year-end payroll obligations: P60 deadlines, P11D filing, what benefits in kind must be reported, and the case for payrolling benefits instead.

1 min read
Payroll

Statutory Sick Pay: What UK Employers Must Know

SSP is now payable from day one under ERA 2025. Eligibility criteria, current rates, the 28-week limit, and what to give employees who do not qualify.

1 min read
Payroll

Statutory Maternity Pay: UK Employer Guide

SMP rates, recovery rules, average earnings calculations, and what employers must communicate to employees going on maternity leave.

1 min read
Payroll

Pension Auto-Enrolment 2025: Employer Guide

Pension auto-enrolment 2025: eligibility criteria, contribution rates, the assessment and communication cycle, and how to stay compliant.

1 min read
Payroll

BACS Payments: How Employee Pay Works in UK Payroll

How BACS works for employee pay: the three-day timing, what a BACS payment file is, and how to connect payroll calculations to actual bank transfers.

1 min read
Payroll

Setting Up HMRC Government Gateway for Payroll

How to set up HMRC Government Gateway for employer payroll: registration, activation codes, and what you need before you can submit RTI.

1 min read
Payroll

HMRC RTI: What UK Employers Need to Know

RTI explained: what Full Payment Submissions are, how Government Gateway credentials work, and what happens if a submission fails or is late.

1 min read
Payroll

National Insurance Contributions 2025: Employer Guide

National Insurance 2025: rates, thresholds, the April increase, and how employer NI and the Employment Allowance affect your payroll costs.

1 min read
Payroll

PAYE Explained: A Complete Guide for UK Employers

PAYE explained for UK employers: how it works, what you are responsible for, and how to stay on top of tax codes, deductions, and RTI submission.

2 min read
Payroll

Payroll errors: how to correct them before HMRC notices

Payroll errors: how to correct overpayments, underpayments, wrong tax codes, NI category mistakes, and late FPS submissions before HMRC takes action.

3 min read
Payroll

Running your first payroll: a step-by-step guide

Running payroll for the first time: HMRC registration, collecting employee data, calculating gross pay and deductions, submitting RTI, paying employees and HMRC.

3 min read
Payroll

Payroll for part-time employees: pro-rata calculations

Part-time employees have the same rights as full-time, calculated pro-rata. How to calculate salary, holiday, pension, statutory pay, and bonuses for part-time staff.

3 min read
Payroll

Salary sacrifice schemes: tax advantages and pitfalls

Salary sacrifice reduces gross pay in exchange for benefits, saving income tax and NI for employee and employer. The advantages and the pitfalls worth knowing before you set one up.

3 min read
Payroll

Holiday pay calculations after the Harpur Trust ruling

The Harpur Trust Supreme Court ruling says 12.07% holiday pay is wrong for term-time and irregular workers. The correct method uses a 52-week rolling average. Here is how it works.

3 min read
Payroll

Scottish and Welsh tax rates: differences employers need to know

Scotland has six income tax bands with rates up to 48%. Wales currently matches England. What employers with Scottish or Welsh employees need to apply in payroll.

3 min read
Payroll

Attachment of earnings orders: how to process them

Employers must comply with Attachment of Earnings Orders or face contempt of court. A guide to AEO types, priority order, protected earnings, and the step-by-step deduction process.

3 min read
Payroll

Directors NI: the annual method explained

Directors are assessed for NI on an annual earnings period, not period by period. How this affects salary-plus-dividend structures and irregular pay.

3 min read
Payroll

The UK payroll calendar 2026-27: key dates

The key payroll dates for 2026-27: tax year start, monthly PAYE payment dates, P60 deadline, P11D deadline, and Bank Holiday payday adjustments.

3 min read
Payroll

BACS payments for payroll: setup and timing

BACS takes three banking days. Submitted on Monday, credited on Wednesday. A guide to the BACS cycle, setup, Bank Holiday adjustments, and bank detail fraud prevention.

3 min read
Payroll

RTI submissions: FPS and EPS explained simply

FPS is sent every payday, EPS is sent for recoveries, nil periods, and year end. A plain guide to RTI submissions for UK employers.

3 min read
Payroll

Tax codes explained: what each letter means

Tax codes tell payroll how much tax to deduct. A guide to what the numbers mean, what each letter suffix does, and when emergency codes apply.

4 min read
Payroll

P45 and P60: what they are and when to issue them

P45 is issued on leaving, P60 is issued to all employees still employed at 5 April. A guide to what each must contain, when to issue, and what happens if you miss the deadline.

3 min read
Payroll

Pension auto-enrolment: your legal obligations

Auto-enrolment is mandatory for eligible employees earning over £10,000. A complete guide to who must be enrolled, contribution rates, communications, and re-enrolment every three years.

3 min read
Payroll

Statutory sick pay: the complete employer guide

SSP from April 2025 is payable from day one of sickness, at £116.75/week for up to 28 weeks. A complete guide to eligibility, calculation, fit notes, and return to work.

3 min read
Payroll

Statutory paternity pay in 2026: what's changed

Paternity leave can now be taken in two separate weeks at any point in the first year. What changed in 2025-26 and what SPP pays.

3 min read
Payroll

Statutory maternity pay: rates, eligibility, and how to calculate

SMP is paid over 39 weeks: 90% for six weeks, then the flat rate or 90% for 33 weeks. A guide to eligibility, calculation, and HMRC recovery.

3 min read
Payroll

Student loan deductions: plans 1, 2, 4, 5 and postgrad explained

There are now five student loan repayment plans plus a postgraduate loan, each with its own threshold and rate. A guide for UK employers on which applies and how to calculate deductions.

3 min read
Payroll

National Insurance categories: which one applies to your staff

HMRC uses NI category letters to tell payroll how to calculate contributions for each employee. A guide to the main categories and which applies to your staff.

3 min read
Payroll

PAYE explained: a plain English guide for employers

PAYE is how employers collect income tax and NI from employees and pass it to HMRC. A plain English guide covering how the system works, what you calculate, and when you pay.

4 min read

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