Payroll

How to Run Payroll for the First Time in the UK: A Complete Beginner's Guide

Running payroll for the first time in the UK follows six steps: register as an employer with HMRC (allow up to 30 days), choose payroll software, collect employee information including P45 or starter checklist, run your first pay run with the correct PAYE, NI, and pension deductions, submit a Full Payment Submission to HMRC on or before payday, and set up a workplace pension within six weeks of your duties start date. The standard tax code for 2026/27 is 1257L giving a £12,570 personal allowance. Employer NI is 15% above the £96.15/week secondary threshold, and the Employment Allowance offsets up to £10,500 of this cost. Pension auto-enrolment requires a minimum 3% employer and 5% employee contribution on qualifying earnings, with the earnings trigger unchanged at £10,000 for 2026/27. The National Living Wage rises to £12.71/hour from April 2026.