Basic PAYE Tools to include provision for printing payslips

24 October 2019

Welcome news for small employers who will soon have the facility to print payslips from Basic PAYE Tools.

HMRC has never provided the facility to print payslips from its Basic PAYE Tools software but when scrutinising the accompanying user guide, it appears that a new function for this will be made available from April 2020. This will be great news to many as HMRC has not previously offered the option to provide staff with payslips.

Basic PAYE tools can be utilised by companies who employ less than ten members of staff and will calculate tax and National Insurance on employee pay, then send the relevant information across to HMRC. It can be used in conjunction with payroll software should that not have the functionality to check a new employee’s National Insurance number, send an Employer Payment Summary (EPS) and / or send an Earlier Year Update (EYU). However, the website has always maintained that other payroll software would be mandatory in the preparation and printing of payslips. 

The software will still only be compatible with businesses with fewer than ten staff, but it will incorporate the ability to print payslips, and it is a legal requirement for an employer to provide its employees with payslips. Payslips must be issued to staff on or before their payday and should show always show an itemised breakdown of what pay elements have been added and of any statutory, or other, deductions that have been taken, to arrive at the net pay figure that the employee receives. Failure to supply an employee with a comprehensive payslip provides valid grounds for a tribunal so it is important for employers to comply with this legislation.


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