What payroll software has to do
If you run payroll yourself, GOV.UK says you need software that reports PAYE information to HMRC online, unless you're exempt. It also lists features some software lacks, so check before you choose:
- producing payslips
- recording pension deductions and making pension payments
- paying people over different periods, such as weekly and monthly
- sending an Employer Payment Summary (EPS) or Earlier Year Update (EYU)
Full Payment Submission (FPS) Employer Payment Summary (EPS) What is RTI?
HMRC's Basic PAYE Tools
- Free, from HMRC, for businesses with fewer than 10 employees.
- Works out tax and National Insurance and sends payroll information to HMRC.
- You must be registered as an employer and have a PAYE Online login first.
- Not designed for agents or bookkeepers.
HMRC doesn't recommend one product over another; GOV.UK lists other HMRC-recognised payroll software, some free and some paid.
Where payslips fit
Each payday, GOV.UK says to produce payslips for each employee and adds: you can use different software if yours does not have this feature. That's the gap PayDocs fills: it makes the payslip from the figures your payroll software worked out, in one of six layouts. PayDocs works out PAYE income tax, National Insurance and supported deductions for 2026/27 pay dates.
PayDocs doesn't send Full Payment Submissions or any other report to HMRC. Keep using your payroll software for that.
Questions
Is there free payroll software from HMRC?
Yes. Basic PAYE Tools is free for businesses with fewer than 10 employees.
Do payslips have to come from my payroll software?
No. GOV.UK says you can use different software to produce payslips if your payroll software doesn't have that feature.
Can PayDocs report to HMRC?
No. It makes payslips; reporting to HMRC stays with your payroll software.
Sources
Official sources checked 25 September 2026. This guide explains how pay documents work; it is not tax or legal advice.
