Most Popular Tool

Payroll & PAYE Made Simple

Run payroll for yourself and employees in minutes. Calculate Income Tax, National Insurance, and generate professional payslips. Built specifically for UK limited company directors.

Everything You Need for Payroll

Automatic Tax Calculations

2025/26 tax bands, National Insurance rates, and student loan deductions calculated automatically.

Director & Employee Payroll

Handle both director and standard employee payroll with different NI calculation methods.

Payslip Generation

Professional payslips generated automatically, ready to send or download as PDF.

RTI Submission Ready

Full Payment Submission (FPS) and Employer Payment Summary (EPS) prepared for HMRC.

Pension Auto-Enrolment

Track pension contributions and ensure compliance with auto-enrolment duties.

Payment Scheduling

Set up weekly, monthly, or custom pay schedules with automatic reminders.

2025/26 Tax Rates Built In

All current tax bands and National Insurance rates are pre-configured. No manual updates needed.

Income Tax Bands

Personal Allowance

Up to £12,570

0%

Basic Rate

£12,571 - £50,270

20%

Higher Rate

£50,271 - £125,140

40%

Additional Rate

Over £125,140

45%

National Insurance Rates

Employee NI (primary)

£12,570 - £50,270

8%

Employee NI (upper)

Over £50,270

2%

Employer NI

Over £5,000

15%

Optimal Director Salary

Most accountants recommend paying yourself a salary of £12,570 per year (the personal allowance) and taking the rest as dividends. This minimizes National Insurance while maximizing tax efficiency.

  • £12,570/year = £1,047.50/month salary
  • No Income Tax on salary (within personal allowance)
  • No Employee NI (below threshold)
  • Minimal Employer NI (£479/year)
  • Remaining profits as dividends (lower tax rate)
Calculate your optimal salary

Example: £60,000 Company Profit

Director Salary£12,570
Employer NI£479
Corporation Tax (19%)£8,931
Available for Dividends£38,020
Total Take-Home~£47,000

Frequently Asked Questions

Common questions about running payroll for your UK limited company.

Do I need to run payroll for my limited company?

Yes, if you're a director of a UK limited company and pay yourself a salary, you must register as an employer with HMRC and run payroll. This applies even if you're the only director and employee. You'll need to report payments to HMRC in real-time using RTI (Real Time Information) and provide payslips.

What is RTI (Real Time Information)?

RTI is the system HMRC uses to collect PAYE information. Every time you pay an employee or yourself, you must report the payment details to HMRC on or before the payment date using a Full Payment Submission (FPS). This replaced the old annual P35/P14 system and helps HMRC track tax and National Insurance contributions in real-time.

How do I pay myself as a company director?

Most directors pay themselves a combination of salary and dividends. The tax-efficient approach is to pay a salary up to the personal allowance (£12,570 for 2025/26) to avoid Income Tax while building National Insurance credits, then take additional income as dividends which are taxed at lower rates. AccountsOS helps you calculate the optimal split.

What are the key payroll deadlines I need to know?

Key deadlines include: FPS submissions must be made on or before each payday, monthly PAYE payments to HMRC are due by the 22nd of the following month (or 19th if paying by post), P60s must be given to employees by 31st May after the tax year ends, and P11D forms for benefits in kind are due by 6th July.

What's the difference between director and employee NI calculations?

Directors can choose between two National Insurance calculation methods: the 'annual earnings period' method (which spreads the NI thresholds across the full year, often resulting in lower NI) or the standard 'alternative method' used for regular employees. Most directors benefit from the annual method, especially if paid irregularly or in lump sums.

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