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UK payroll is built on PAYE Modernisation via RTI — every pay run must be reported to HMRC on or before pay date. Rippling automates the RTI filings, P60s, and auto-enrolment so your UK entity stays compliant from day one.
Running payroll on a UK entity (Limited Company, Limited Liability Partnership, or UK Branch of a foreign company) requires registration as an employer with HMRC, operation of a PAYE scheme, and Real Time Information (RTI) reporting. Unlike many countries, the UK's RTI system requires payroll data to be submitted to HMRC on or before every pay date — not monthly in arrears.
Employer obligations include PAYE withholding, National Insurance, and pension auto-enrolment administration from the first employee. The P11D process handles benefits-in-kind reporting annually. Year-end obligations (P60 to every employee by 31 May; final RTI submission) close out each tax year.
UK payroll is procedurally well-defined and Rippling's UK payroll module handles all RTI filings, NI calculations, auto-enrolment remittances, and P60/P11D generation natively.
Rippling's UK payroll module provides:
| Contribution | Rate | Notes |
|---|---|---|
| Employer National Insurance | 13.8% | On earnings above secondary threshold (£9,100/year, 2024/25) |
| Auto-Enrolment Pension (minimum) | 3% | On qualifying earnings (£6,240–£50,270). Employer may contribute more. |
| Apprenticeship Levy | 0.5% | Only if annual payroll bill exceeds £3M |
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| Contribution | Rate | Notes |
|---|---|---|
| Employee National Insurance | 8% | On earnings £12,570–£50,270; 2% above upper limit |
| Auto-Enrolment Pension (minimum) | 5% | On qualifying earnings. Includes tax relief. |
| PAYE Income Tax | 20%/40%/45% | Withheld per HMRC PAYE coding notice |
| Band | Taxable Income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic Rate | £12,571–£50,270 | 20% |
| Higher Rate | £50,271–£125,140 | 40% |
| Additional Rate | Over £125,140 | 45% |
Scottish rate taxpayers (main residence in Scotland) have different bands — Rippling applies the correct rate automatically via HMRC PAYE coding notices.
Final pay must include all accrued but untaken annual leave (at 12.07% of hours worked for variable-hours employees). Notice pay — either worked or paid in lieu (PILON) — is subject to PAYE and NI as of April 2018 changes. Statutory redundancy pay is tax-free up to £30,000; amounts above are taxable.
Statutory: Auto-enrolment pension, 28 days annual leave, Statutory Sick Pay, Statutory Maternity/Paternity Pay.
Market standard: Private medical insurance, group life assurance (3–4x salary), income protection, enhanced parental leave, cycle-to-work, season ticket loans. Salary sacrifice schemes (pension, cycle, EV leasing) are popular for tax efficiency and are supported by Rippling's UK payroll configuration.
Real Time Information (RTI) is HMRC's payroll reporting system, requiring employers to submit payroll data on or before every pay date. Rippling submits the Full Payment Submission (FPS) automatically on each pay run, and the Employer Payment Summary (EPS) monthly. Late RTI submissions attract automatic penalties — Rippling's automated submission eliminates this risk.
Rippling's UK payroll assesses each employee's auto-enrolment eligibility on their start date or at each pay run. Eligible employees are automatically enrolled in the configured pension scheme with minimum contributions (3% employer, 5% employee on qualifying earnings). Opt-out requests are processed within Rippling, and re-enrolment every 3 years is handled automatically.
UK payroll year-end runs from 6 April to 5 April. Obligations include: issuing P60s to all employees by 31 May, filing P11Ds for taxable benefits by 6 July, submitting the final FPS with 'Last in Year' marker, and completing EPS with year-end declarations. Rippling automates all of these within its UK payroll year-end workflow.
Yes. Rippling's UK payroll module handles RTI filing, NI calculations across all categories, auto-enrolment pension management, P60 generation, and P11D preparation natively. thePeopleStack configures the UK payroll setup including PAYE scheme registration, pension scheme integration, and benefits configuration. Contact us to set up UK payroll on your Rippling instance.
