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Holloway Davies

Payroll and PAYE

Payroll and PAYE

24 articles on payroll and paye for UK limited company directors, contractors, sole traders and small businesses.

  • Payroll and PAYE

    Employer NIC and the True Cost of an Employee in 2026/27

    The salary you agree with a new employee is not what they cost you. In 2026/27 you add employer National Insurance at 15% on everything above £5,000, a minimum 3% pension contribution on qualifying earnings, and, for larger payrolls, the 0.5% apprenticeship levy. This guide works through the full true cost at £30,000, £45,000 and £70,000 salaries, explains the £10,500 Employment Allowance, and shows the marginal cost of every pay rise you award.

    •7 min read

  • Payroll and PAYE

    Tax Deducted at Source: A Complete Guide for UK Taxpayers

    Tax deducted at source (TDS) means income tax is taken from certain payments before you receive them. This guide covers how TDS applies to interest, dividends, payroll, rental income, and gift aid, plus when you can reclaim overpaid tax.

    •8 min read

  • Payroll and PAYE

    UK Taxation Bands 2026/27: Income Tax, NI, and More

    A clear breakdown of the UK taxation bands for 2026/27, covering income tax, National Insurance, dividend tax, and corporation tax. Includes practical examples for limited company directors, sole traders, and contractors.

    •6 min read

  • Payroll and PAYE

    Why Construction Subcontractors Need a Specialist Accountant for CIS

    Working as a construction subcontractor means dealing with the Construction Industry Scheme (CIS), VAT, and often IR35. A specialist accountant who knows the sector inside out can save you thousands and keep you compliant. Here is what you need to know.

    •7 min read

  • Payroll and PAYE

    What Are The Rules For Paying An Employee's Mileage Tax-free? (45p Is Now 55p)

    The tax-free mileage rate that was 45p per mile for years rose to 55p per mile from 6 April 2026 (tax year 2026/27) for the first 10,000 business miles an employee drives in their own car. Above 10,000 miles, the rate stays at 25p per mile. This article explains how to pay it through payroll, what counts as a business journey, and what happens if you pay more or less than the approved amount.

    •7 min read

  • Payroll and PAYE

    How to Process a Final Salary Payment for a Director Leaving the Company

    Processing a final salary payment for a leaving director is different from a standard employee termination. You need to handle the director's loan account, accrued holiday pay, and final payroll submission correctly to avoid HMRC penalties. This guide covers the full process for UK limited companies.

    •8 min read

  • Payroll and PAYE

    How to Register for PAYE as a UK Employer: HMRC Online Guide

    You must register with HMRC as an employer before your first payday, whether you are a limited company director paying yourself a salary, a sole trader taking on staff, or a partnership with employees. This guide covers who needs to register, what triggers the obligation, the step-by-step online process, what references HMRC issues and when, ongoing RTI obligations, and the cost of getting it wrong.

    •12 min read

  • Payroll and PAYE

    How to Set Up PAYE for a New Business in the UK

    Step-by-step guide to registering as an employer, choosing payroll software, and running your first payroll. Covers directors, sole traders with staff, and common pitfalls like the Employment Allowance and RTI deadlines.

    •9 min read