Guidance

First time users: how to install and set up Basic PAYE Tools

Updated 17 April 2025

Introduction

This guide will take you through the process of installing Basic PAYE Tools on your computer and setting up an employer and employees.

Basic PAYE Tools is free payroll software from HMRC for businesses with fewer than 10 employees. You can use it to work out payroll deductions and report payroll information online in real time.

Basic PAYE Tools will:

• record your employees바카라 사이트™ details
• work out and record your employees바카라 사이트™ pay, tax, National Insurance contributions and any student or postgraduate loan deductions every payday
• generate the payroll data that you need to send to HMRC in real time, including starter and leaver information
• generate payslips
• produce an 바카라 사이트˜Employer Payment Record바카라 사이트™ that shows you how much you need to pay HMRC
• help you to work out statutory payments such as Statutory Sick Pay and Shared Parental Pay using the calculators provided
• help you to claim Employment Allowance to reduce your annual National Insurance liability

It is not designed for agents or payroll bureaus acting for multiple employers.

Before you start

Before using this guide you must:

• register as an employer with HMRC
• enrol for PAYE Online for employers
• download Basic PAYE Tools

You바카라 사이트™ll need an active internet connection for Basic PAYE Tools to:

• send your payroll information to HMRC every time you pay your employees
• update the software automatically

Install Basic PAYE Tools

This is a guide for Windows and Mac users. Mac users may need to amend security and privacy settings to allow software to be installed.

Linux users can get help to install Basic PAYE Tools on Linux operating systems.

1. Double select the zipped file that you have downloaded on to your computer.
2. Follow the instructions in the pop-up until you reach the licence agreement page.
3. Read the licence agreement.
4. Select 바카라 사이트˜I accept the agreement바카라 사이트™ to continue with the installation and then select Next. If you do not accept the agreement you will not be able to install Basic PAYE Tools.
5. Select 바카라 사이트˜Standard installation바카라 사이트™. If you바카라 사이트™re an advanced user or system administrator, you can select 바카라 사이트˜Custom installation바카라 사이트™ to change installation settings.
6. Select Next until you reach the 바카라 사이트˜Check for updates automatically바카라 사이트™ page.
7. Select the checkbox to make sure that you do not miss any updates to the tool.
8. Select Next, reading the information on each page, until you reach the 바카라 사이트˜Installing바카라 사이트™ page. The installation can take up to 10 minutes. When it has finished, you will see an 바카라 사이트˜Installation complete바카라 사이트™ page.
9. Select Finish to complete the installation.

 A shortcut icon to Basic PAYE Tools will appear on your computer desktop.

If you have problems installing Basic PAYE Tools

If Basic PAYE Tools does not install properly, this may be resolved if you:

• restart your computer
• run the installation again

Some antivirus programmes incorrectly put downloaded software into quarantine. Contact your antivirus software provider for support if you cannot retrieve the file from quarantine.

If you바카라 사이트™re having issues downloading or opening Basic PAYE Tools, check the service availability and issues for what to do.

If you use the Welsh version of Basic PAYE Tools

You need to set up the Welsh version the first time you open the tool. You only need to do this once to update the language settings.

On your computer바카라 사이트™s desktop, find Basic PAYE Tool바카라 사이트™s crown logo and follow the steps to set up the Welsh version.

1. Right select the logo.
2. Select 바카라 사이트˜Language바카라 사이트™.
3. Select 바카라 사이트˜Welsh바카라 사이트™.
4. Close and reopen Basic PAYE Tools to view the Welsh version.

If you use the accessible version of Basic PAYE Tools

You need to set up the accessible version the first time you open the tool.

If you use Windows

After installing the tool, follow the steps to open the accessible version of the tool in Windows.

1. Select the Start Menu icon.
2. Select Basic PAYE Tools - Assistive Mode, or All and then Basic PAYE Tools - Assistive Mode.

Basic PAYE Tools will open in assistive mode on your browser.

You will need to follow these steps every time you open the tool.

If you use a Mac

After installing the tool, follow the steps to set up the accessible version of the tool in Mac.

1. Open Basic PAYE Tools from your computer바카라 사이트™s desktop shortcut or alias.
2. Close Basic PAYE Tools.
3. Select Go from the desktop or a Finder window.
4. Select Home.
5. Open the 바카라 사이트˜HMRC바카라 사이트™ folder.
6. Open the 바카라 사이트˜payetools-rti바카라 사이트™ folder.
7. Right select the file 바카라 사이트˜bptshell-settings.ini바카라 사이트™.
8. Select Open With followed by Textedit
9. Enter [General] at the end of the file.
10. Enter mode=assistive on the next line.
11. Save the file.
12. Open Basic PAYE Tools from your computer바카라 사이트™s desktop shortcut or alias.

Basic PAYE Tools will open in assistive mode on your browser.

You only need to do this once to update the accessibility settings.

Use your desktop shortcut or alias when you open Basic PAYE Tools to keep these settings.

If you use Linux

1. Open Basic PAYE Tools from your computer바카라 사이트™s desktop shortcut.
2. Close Basic PAYE Tools.
3. Select the 바카라 사이트˜Home바카라 사이트™ folder in the 바카라 사이트˜Files바카라 사이트™ app.
4. Open the 바카라 사이트˜HMRC바카라 사이트™ folder.
5. Open the 바카라 사이트˜payetools-rti바카라 사이트™ folder.
6. Right select the file 바카라 사이트˜bptshell-settings.ini바카라 사이트™.
7. Select Open With Text Editor
8. Enter [General] at the end of the file.
9. Enter mode=assistive on the next line.
10. Save the file.
11. Open Basic PAYE Tools from your computer바카라 사이트™s desktop shortcut.

Basic PAYE Tools will open in assistive mode on your browser.

You only need to do this once to update the accessibility settings.

Use your desktop shortcut when you open Basic PAYE Tools to keep these settings.

Add an employer

To use Basic PAYE Tools, you first need to add an employer.

Launch Basic PAYE Tools on your computer either by:

• double selecting the Basic PAYE Tools icon on your desktop
• searching for 바카라 사이트˜Basic PAYE Tools바카라 사이트™ in your start menu

Select Add an employer from the menu on the left to go to the 바카라 사이트˜Add employer바카라 사이트™ page.

Fields with a red asterisk must be filled in.

Select the green question mark symbols if you need help with a field.

1. On the 바카라 사이트˜Add employer바카라 사이트™ page, enter the employer바카라 사이트™s name.
2. Enter the Employer PAYE reference of 3 numbers followed by a forward slash and up to 10 characters, found on the letter from HMRC after you registered as an employer.
3. Enter the Accounts Office reference 바카라 사이트• this 13-character reference is also found on your HMRC letter.
4. Enter your Corporation Tax Unique Taxpayer Reference if applicable.
5. Enter your self-assessment Unique Taxpayer Reference if applicable.
6. Select the relevant tax year for your first real time information submission using Basic PAYEÌý°Õ´Ç´Ç±ô²õ.
7. ³§±ð±ô±ð³¦³ÙÌýNext.
8. Enter the employer바카라 사이트™s address details.
9. Select the checkbox if you are exempt from employer Class 1 National Insurance contributions.
10. Select Next to go to the confirmation page.
11. Read the information on the page and select Next.

This takes you to the 바카라 사이트˜Employer details바카라 사이트™ page, which includes a warning message (indicated by an orange triangle) about Employment Allowance.

1. Select Employment Allowance in the menu on the left.
2. Read the eligibility criteria on the page and select Next.
3. Answer the questions on the 바카라 사이트˜Employment Allowance바카라 사이트™ page.
4. Select Next to view your eligibility status for Employment Allowance.

You do not need to add employees if you only need to send an Employer Payment Summary using Basic PAYE Tools.

Add an employee

1. Select Add an employee from the menu on the left of the 바카라 사이트˜Manage employees바카라 사이트™ page.
2. Select New and current for most employees.
3. Fill in their personal details, including name, address, gender, date of birth, National Insurance number (if known) and passport number (if known).
4. Enter their payroll ID if you have set one up, otherwise you could create a duplicate employment record for this employee. HMRC will use it on any correspondence with you about that employee. If you re-employ someone in the same tax year do not use their previous payroll ID.
5. Select the normal weekly hours worked.
6. If the employee is a company director, enter the date of appointment. Select the 바카라 사이트˜Directors바카라 사이트™ cumulative method바카라 사이트™ of National Insurance calculation if they are likely to reach state pension age during the selected tax year.
7. Enter the employment start date.
8. Select the basis for setting up the employee 바카라 사이트” a new starter with or without a P45, a new starter receiving an occupational pension, a new starter seconded to work in the UK, or an existing employee. The option selected will bring up related questions.
9. Fill in payment details, including how often you pay your employee, the tax code, National Insurance category letter (for existing employees this will be on your payroll records), whether student or postgraduate loan deductions apply (see the relevant HMRC letter for the plan type).
10. Select Next to finish adding an employee.

Only change an employee tax code if HMRC tells you to.

After installation and set up

You can now start running payroll with Basic PAYE Tools.

Find out how to tell HMRC when an employee leaves, send an Earlier Year Update, find or check an employee바카라 사이트™s National Insurance number, and send an Employer Payment Summary using Basic PAYE Tools.