Basic PAYE Tools is software that you download onto your computer. It will help you run your payroll throughout the year. It is designed for employers who have nine or fewer employees, and you can use it to work out payroll deductions and then report payroll information online in real time.
This guide tells you how to set up Basic PAYE Tools and start using it. It also tells you how to take a backup of your data, get the tools working with assistive software, and what to do if you encounter any problems.
On this page:
To find out about the key features and benefits of Basic PAYE Tools and its limitations, read the guide 'Software packages and other payroll options'.
Software packages and other payroll options
You can read how to download and install the tools, set up your employer details and the details of each of your employees in the user guide 'First time users: download and install Basic PAYE Tools (RTI)'.
First time users: download and install Basic PAYE Tools (RTI) (PDF 1.7MB)
The next step is to add pay details, which will enable the tools to calculate the PAYE tax, National Insurance contributions (NICs) and other deductions. Once this is completed, you must then report your payroll information to HM Revenue & Customs (HMRC) online. The user guide 'All users: using Basic PAYE Tools for real time reporting' explains how to do all of that.
All users: using Basic PAYE Tools for real time reporting (PDF 1.6MB)
If you’ve not already downloaded the tools, follow the link below to read how to get the version that’s right for your situation and computer.
If you already use Basic PAYE Tools to run your payroll, you will need to make sure you have the RTI (Real Time Information) version of the tools for 2013-14, so you can start reporting payroll information in real time from 6 April 2013.
It is important that you transfer your data to the RTI version of the tools in a specific order. The user guide ’Existing users: switching to Basic PAYE Tools (RTI)' will support you through this process.
Existing users: switching to Basic PAYE Tools (RTI) (PDF 2.4MB)
If you need help using the tools to run your payroll and report in real time you can use the following guide.
All users: using Basic PAYE Tools for real time reporting (PDF 1.6MB)
If you’ve not already downloaded the tools, follow the link below to read how to get the version that’s right for your situation and computer.
It is important that you are using the latest version of the Basic PAYE Tools - otherwise you may be operating PAYE incorrectly.
The latest version of Basic PAYE Tools 2012 is version 4.2.1.20469.
To check the version you are using, open the Basic PAYE Tools 2012, and select the 'Options' icon from the top of the screen. Then select the 'Application Settings’ tab and note the version number displayed against 'Basic PAYE Tools Core'.
The latest version of Basic PAYE Tools (RTI) is version 13.0.13099.
To check the version you are using, open the Basic PAYE Tools (RTI). The version number is shown in the bottom left corner of the Home page.
Once you've installed Basic PAYE Tools, any time your computer is connected to the internet you will be automatically advised when updates become available. Please look out for these notifications on the home page of Basic PAYE Tools.
If you have automatic updates switched off, you can still check for updates manually:
If you use Basic PAYE Tools to work out and record your wages, HMRC recommends that you save the data regularly and back it up after each pay period.
To back up your data:
By default, the backup option stores a copy of your database as a file on your computer's hard disk drive. This means that if your computer or the hard drive fails, you may not be able to access the backup file - so you should select another location, such as a CD-ROM or USB memory stick.
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 'Known Problems' - how to enable data in your PDF forms (PDF 130K)
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, look at HMRC's Service issues page.
Service issues - Basic PAYE Tools
For a list of common error messages you might get when you try to submit PAYE information in real time using Basic PAYE Tools, and what action you need to take, look at the following page:
