PAYE Payroll Calculator

Calculate payroll for up to 10 employees with PAYE tax, National Insurance, pension, and student loan deductions. Generate professional PDF payslips.

Payroll Settings
Maximum 10 employees
Frequently Asked Questions

PAYE (Pay As You Earn) is calculated by applying income tax to earnings above the tax-free personal allowance (£12,570 for 2026/27). Use the employee's tax code to determine their allowance, then apply the relevant tax bands: 20% basic rate (£12,571-£50,270), 40% higher rate (£50,271-£125,140), and 45% additional rate (over £125,140). Scotland has different tax bands with six rates ranging from 19% to 48%.

Employee National Insurance (NI) is deducted from the employee's gross pay at 8% on earnings between £12,570 and £50,270, then 2% on earnings above £50,270. Employer NI is paid by the employer on top of wages at 15% on earnings above the secondary threshold of £5,000 per year (£96/week or £417/month). Employer NI is a cost to the business but doesn't affect the employee's take-home pay.

Student loan repayments are automatically deducted through PAYE if earnings exceed the threshold. Plan 1: 9% above £26,900, Plan 2: 9% above £29,385, Plan 4 (Scotland): 9% above £33,795, Plan 5: 9% above £25,000, Postgraduate Loan: 6% above £21,000 (2026/27). If you have both Plan 2 and Postgraduate loans, both are deducted (15% total above respective thresholds). Deductions are calculated on gross pay before tax.

UK employers must auto-enrol eligible employees into a workplace pension scheme. The minimum contribution is 8% of qualifying earnings (£6,240 to £50,270 annually), with at least 3% from the employer and 5% from the employee. Employee contributions are taken from gross pay before tax, providing tax relief. Both contributions are based on qualifying earnings, not total salary.

No, this calculator is designed for standard payroll calculations only. It does not calculate Statutory Sick Pay (SSP), Statutory Maternity Pay (SMP), Statutory Paternity Pay (SPP), or other statutory payments. For these, you'll need to use HMRC's specific calculators or payroll software that handles statutory payments according to current rates and eligibility criteria.
Important Disclaimer

This calculator is for informational purposes only and should not be considered professional financial or legal advice. Tax rates and thresholds are based on current HMRC guidance but may change. Always verify calculations with HMRC or a qualified accountant. This tool does not generate RTI submissions, P45s, P60s, or handle statutory payments.