Download this free payslip template in excel and follow the instructions on how to fill it in.
Whilst I am an accountant, I’m not your accountant. The information and free payslip template in this article is for guidance and information purposes only. In the UK, employers are required to report information about the payroll they have run to HMRC everytime they pay their employees (including Director only companies). This is done online in a .GOV payroll account using what is called ‘RTI submissions‘. An RTI submission contains all the essential pieces of information about the payroll you have run. This is passed to HMRC so that each individuals tax records can be updated and they know how much income tax & National Insurance to expect to be paid over to them by the 22nd of each month. Find out more about How Payroll Work for UK Small Businesses here.
How to Edit the Payslip Template in Excel
Once you’ve downloaded the payslip template, you’ll need to edit it to include all the right information about the employee you are paying. Here’s all the details you need to fill in a payslip
- Employee Name – add their full name in accordance with their employment contract;
- Employers Name – input the Employers name which matches the name used when the business was registered as an employer with HMRC;
- Gross Pay – enter details of gross pay such as basic salary, overtime and cash equivalents of benefits in kind;
- Enter deductions – the main deductions in the UK are income tax, National Insurance and pension contributions:
- Income tax will be calculated according to the tax code of the individual (commonly 1275L for the 2022-23 tax year). This is usually found on their P45 or new starter checklist
- National Insurance is calculated based on gross salary at different rates depending on earnings
- Pension contributions are currently set at a minimum of 5% of qualifying earnings, with additional tax relief given at source or using a net pay arrangement.
- Employers NI – the amount of National Insurance the employer pays based on the gross salary of the employee
- Employers Pension – UK employers are required to contribute an amount to a workplace pension scheme on behalf of their employees. This is currently a minimum of 3% of qualifying earnings.
- Tax Reference – Input your ERN, that’s the employers reference number given to all businesses that are registered as an Employer. It’s made up of letters and numbers
Once the payslip template has been completed, a copy must be passed to the relevant Employee. It is a legal requirement in the UK to provide employees with a breakdown of how their net pay was reached every time they get paid.
- Payslips & Payslip Deductions Explained
- How to Register as an Employer with HMRC
- How Payroll Works for UK Small Businesses
Friendly Disclaimer: Whilst I am an accountant, I’m not your accountant. The information in this article is legally correct but it is for guidance and information purposes only. Everyone’s situation is different and unique so you’ll need to use your own best judgement when applying the advice that I give to your situation. If you are unsure or have a question be sure to contact a qualified professional because mistakes can result in penalties.