Basic PAYE Tools is a computer software package provided by HM Revenue & Customs (HMRC) to help you run your payroll throughout the year.
You can use this free tool to work out the tax and National Insurance contributions (NICs) for your employees in each pay period and, if you have up to and including nine employees at 5 April, you will be able to file your Employer Annual Return (forms P35 and P14) online. You can also use it to file your starter and leaver forms (P45 and P46) online.
This guide explains what tools are contained within the application and when you might need to use them, as well as how to download the tools and keep up to date with the latest versions.
On this page:
The latest version of the tools is 4.1.0.20348.
This new update is available to reflect the 2012 Budget changes.
This latest version also provides a few small fixes and the following improvements:
New users - should download the latest version 4.1.0.20348 by following the link in the section 'Downloading Basic PAYE Tools'.
Existing users - If you already have the February 2012 version of Basic PAYE Tools installed, the May update will be available by automatic update. To check the version you are using, open the tools, select the 'options' icon and then the 'Application Settings' tab and see the section of this guide on 'Using Basic PAYE Tools Automatic updates' for advice on switching them on.
You'll need to be connected to the internet to do this but it will mean that you will always be running your payroll using the latest version of the tools. If the computer you use the tools on is not connected to the internet, see the section in this guide 'Getting or updating Basic PAYE Tools if your computer doesn't have internet access'.
Please note: If you used Basic PAYE Tools last year and have not yet transferred your data to Basic PAYE Tools 2012, please make sure you have downloaded the July 2011 update to last year's Tools (version 3.1.2.15508). You will need to do this before you can transfer your data.
Download the July 2011 updates for Basic PAYE Tools
To check whether there are any known issues that may impact on your use of the tools and to find workarounds and solutions to those issues, visit the HMRC Service Issues page.
Service issues - Basic PAYE Tools
The main features of the application are:
Any employer can use these tools, but they are most useful for employers with up to and including nine employees.
As an alternative, you may wish to consider using commercial payroll software, some of which is free.
PAYE Recognition - commercial payroll software
To be able to use Basic PAYE Tools, your computer needs to be one of the following:
Please note: this is the last year Basic PAYE Tools will support an Apple Mac with PowerPC processors. From next year your Mac will need an Intel processor.
The recommended minimum system requirements are:
Your computer must also have:
The Adobe products listed above can be downloaded free from the Adobe website.
Go to the Adobe website (Opens new window)
Disclaimer - please read before downloading the tools.
HMRC will not be responsible for any loss, damage, cost or expense arising out of the installation and use of this application.
The security of the data held in the employer database component of the tools is your responsibility.
If you are already using the Employer Database from the 2011 version of the Basic PAYE Tools, HMRC strongly recommends that you backup your data before installing the new tools.
Follow the links below to download the version of the tools to suit your computer/operating system. It might take several minutes to download via a slow internet connection. As with downloading any large file from the internet, if it's taking longer than expected then trying again at a different time of day can often result in a faster, successful download.
I've read the disclaimer and want to download Basic PAYE Tools for Windows (ZIP 34MB)
I've read the disclaimer and want to download Basic PAYE Tools for Mac OS X (Intel) (ZIP 60MB)
I've read the disclaimer and want to download Basic PAYE Tools for Mac OS X (PowerPC) (ZIP 43MB)
I've read the disclaimer and want to download Basic PAYE Tools for Linux (ZIP 33MB)
If you have a Mac computer and are not sure whether it has an Intel or PowerPC processor, select the Apple logo on top left hand corner of your desktop and then select 'About this Mac'.
If you are planning to install Basic PAYE Tools on multiple computers on your network, please contact the HMRC Online Service Helpdesk.
If you are having difficulties downloading Basic PAYE Tools on your computer, please see 'Problems installing Basic PAYE Tools' in the section 'Installing Basic PAYE Tools' later in this guide.
Contact the HMRC Online Services Helpdesk
If the computer on which your tools will be installed doesn't have internet access, then you can either:
If the computer on which you use Basic PAYE Tools is not connected to the internet, you should follow the steps below to update the tools:
Contact the HMRC Employer Orderline
Once you have downloaded the files to your computer, locate the folder you downloaded them to and install the Basic PAYE Tools package on your computer. How you do this will vary depending on the type of computer and operating system you are using, but will be the same as installing other software packages you download from the internet.
Instructions on how to install and open the tools can be found by following the link below.
Download and read how to get Basic PAYE Tools running in Linux (PDF 25K)
If you have trouble installing Basic PAYE Tools, please try restarting your computer and running the installation again.
Please note that some antivirus programs may incorrectly quarantine software that you have downloaded from the internet. If you are unsure of how to restore a download from quarantine please contact your antivirus software provider for support.
If your installation problems continue or you have problems while using the tools, contact HMRC's Online Services Helpdesk.
Contact HMRC's Online Services Helpdesk
As mentioned in the system requirements section of this guide, Basic PAYE Tools requires Adobe Flash Player 9 or higher to run. If your computer doesn't already have this installed, you'll be prompted to download and install it when you first run Basic PAYE Tools. Your computer must be connected to the internet for this to work. Alternatively, you can download the Flash Player on another computer and copy it to the one you want to use the tools on.
When installing the Adobe Flash Player, you should check your Windows toolbar (at the bottom of your desktop), as a flashing icon might indicate that the Flash installation needs your attention to continue.
If the computer you are using the tools on is linked to the internet, HMRC recommends that you make sure you have selected the 'Automatic update' option - find out by selecting 'Options' on the top of the tools homepage. You will be notified automatically if there are any updates available for you to download. This means you will not miss important changes that may affect your employees. If you have automatic updates switched off, you can still check for updates manually - select 'Options' then 'Automatic Update Settings' then 'Check for Updates now'.
If you are operating your own payroll using the database and other tools provided in this package, then HMRC recommends that you save all the data in your Employer Database after each pay period.
To back up your data, select the 'Back-up/Restore the Employer Database' button in the bottom left hand corner of the screen below the 'Employer' and 'Employee' tabs. You are then given the option to 'Back-up' or 'Restore' the Employer Database.
The modules are available to download individually once you have installed and launched the Basic PAYE Tools. Just select 'Learning Zone', then the name of the module you want to download and follow the simple on-screen instructions to download and install the module. Once this has been completed, you can access the module from the Learning Zone menu within the tools.
If you are using assistive software on your computer, for example a screen reader, then you will still be able to use Basic PAYE Tools.
To set 'Basic PAYE Tools - Assistive Mode' as default:
Recent versions of Adobe Reader software can cause your data to fail to appear in the PDF forms contained within the tools. Instructions on how to fix this can be found by following the link below.
Download and read how to enable data in your PDF forms (PDF 130K)
HMRC's downloadable P11 Calculator is part of the Basic PAYE Tools package. It provides a free and convenient way for smaller employers to maintain their payroll records in an electronic format. It also makes it easy for many smaller employers to meet the requirement to file their Employer Annual Return online. You can also use it to file your in-year forms (P45 and P46) online. Read about setting up and using the Basic PAYE Tools P11 Calculator, its key features and limitations by following the links below.
Setting up and using the Basic PAYE Tools P11 Calculator
Using commercial payroll software or HMRC’s downloadable P11 Calculator
HMRC's downloadable P11 Calculator limitations
Contact HMRC's Online Services Helpdesk
If you want to keep your database information, for example if you plan to install Basic PAYE Tools on another computer, you must back up your data first. Follow the procedure outlined in the section 'Backing up your data' to do that.
From your Windows desktop:
Alternatively, you can uninstall the tools by using the 'Add or Remove Programs' feature within the Windows Control Panel.
You may also need to delete the database separately. By default this will be in your user profile folder.
Locate the folder where you have installed Basic PAYE Tools, by default this is /Applications/HMRC/payetools2012. Run the 'Uninstall' program.
