Payroll Services for Small Businesses and Directors

What this service is and who needs it

This is a monthly payroll service for small UK limited companies, including companies where the only person paid is the director. We calculate pay, tax and National Insurance, send the Real Time Information (RTI) reports to HMRC and give you payslips and a payment summary.

It suits founders who pay themselves a salary, small teams with a few employees, and directors based outside the UK who need a UK payroll run correctly. Borderless Filings is a filing service, not an accountancy practice. Deciding how much salary to take is a planning choice; our guide to director payroll in the UK covers the options, and a qualified adviser can help with your case.

Registering as an employer

You must register with HMRC as an employer before the first payday, but not more than 2 months before you start paying people. HMRC sends your PAYE reference by letter. GOV.UK says this applies "even if you're only employing yourself, for example as the only director of a limited company".

HMRC's own PAYE manual narrows when a scheme is actually required. You need one when payments at or above the Lower Earnings Limit are made, or when anyone paid has another job or pension, gets benefits or expenses, or when subcontractors are paid. A sole director paid below the Lower Earnings Limit with none of those features does not need a PAYE scheme. We check this with you before registering.

RTI reporting: FPS and EPS

Every payroll is reported to HMRC as it happens. HMRC's payroll reporting guidance sets the timing:

The FPS lists each person's pay and deductions. The EPS is used to claim Employment Allowance, reclaim statutory pay such as maternity or paternity pay, and tell HMRC when no employees were paid in a tax month. Tax months start on the 6th.

2026/27 rates and thresholds

These figures run from 6 April 2026 to 5 April 2027 and come from HMRC's rates and thresholds for employers 2026 to 2027.

• Employee National Insurance: 8% between the Primary Threshold and the Upper Earnings Limit, 2% above.
• Employer National Insurance: 15% on earnings above the Secondary Threshold.
• Income tax (England, Wales and Northern Ireland): 20% basic, 40% higher and 45% additional rate. Scotland has its own bands.

Employment Allowance

Eligible employers can cut their employer National Insurance bill by up to £10,500 a year through the Employment Allowance, claimed through payroll software on an EPS. The allowance is used up against each payroll until the £10,500 is gone.

Not everyone can claim. The eligibility rules exclude:

• Sole-director companies where the director is the only employee paid above the Secondary Threshold. HMRC's single-director guidance covers this in detail.
• Public bodies and businesses doing more than half their work in the public sector (charities excepted).
• Employers of domestic staff such as nannies or gardeners, unless they are care or support workers.
• Earnings covered by the IR35 off-payroll working rules.

Only one company in a group, and only one payroll, can claim.

National Minimum Wage and National Living Wage

Employees must be paid at least the legal minimum for their age. For 2026/27 the National Living Wage is £12.71 an hour for workers aged 21 and over, £10.85 for ages 18 to 20, and £8.00 for under-18s and apprentices. We flag any pay that falls below the rate for the person's age.

Workplace pensions: auto-enrolment in brief

Most employers must enroll eligible staff into a workplace pension. According to The Pensions Regulator's guidance for new employers:

• Duties start on the day your first member of staff starts work.
• You must enroll staff aged 22 up to State Pension age who earn above the £10,000 earnings trigger.
• The minimum contribution is 8% in total, with at least 3% from the employer, on earnings between £6,240 and £50,270 a year for 2026/27.
• You must complete a declaration of compliance with The Pensions Regulator within 5 months of your duties start date, and re-enroll staff every 3 years.

A company whose only staff is one director with a contract of employment, or directors without employment contracts, has no auto-enrolment duties, as The Pensions Regulator explains on its directors page. We run pension deductions through payroll; choosing a pension provider and signing up with it stays with you.

Director-only payroll

Many small companies run payroll for one person: the director. The same RTI rules apply, so an FPS goes to HMRC on or before each payday even if the salary is small, or an EPS for months with no pay. A sole-director payroll usually cannot claim the Employment Allowance, which affects whether a salary above £5,000 creates employer National Insurance. The right salary level depends on your other income and plans, and our director payroll guide explains the trade-offs. Dividends are reported on your Self Assessment return, not through payroll.

What is included

• PAYE employer registration, if you do not have a scheme yet.
• Monthly payroll calculations: tax, National Insurance, student loans, statutory pay and pension deductions.
• FPS on or before each payday and EPS when needed, including the Employment Allowance claim if eligible.
• Payslips, a monthly summary of what to pay HMRC and by when, and P60s after the tax year ends.
• Starter and leaver processing.

What is not included

• Paying your staff or HMRC (you make the payments from the company account).
• Choosing a pension provider, declarations of compliance, employment contracts and HR advice.
• Advice on salary levels, IR35 or employment status.

Government fees

HMRC does not charge to register as an employer or to send RTI submissions. You pay the tax and National Insurance you deduct, plus employer National Insurance, to HMRC. Our monthly fee is on the pricing page.

How it works

1. Order and intake. Start your order and tell us your pay dates and who you pay.
2. Secure document upload. Upload starter forms, P45s, any existing PAYE reference and pension details (see our security page).
3. Setup. We register the scheme if needed or take over your existing one with HMRC authorization.
4. Monthly run. You confirm pay changes; we calculate and send you payslips and a summary to approve.
5. Submission. We send the FPS on or before payday and any EPS by the 19th.
6. Tracking and reminders. Submission receipts, payslips and the amount due to HMRC by the 22nd appear in your portal.

What we need from you

• Company name, company number and PAYE reference and Accounts Office reference, if registered.
• For each person: full name, address, date of birth, National Insurance number, start date and pay rate.
• A P45 from their last job or a completed starter checklist.
• Student loan plan details, where relevant.
• Pension scheme details, if you have a workplace pension.
• Pay changes, overtime, bonuses and absences before each payroll cutoff.

Timelines and penalties

Our team starts once intake and documents are complete. HMRC does not publish a fixed time for issuing a PAYE reference, so register well before your first payday. Once running, we work to your pay date so the FPS is never late.

HMRC charges late filing penalties of £100 a month for employers with 1 to 9 employees, rising to £400 for 250 or more. There is no penalty for the first late month in a tax year, for a new employer whose first FPS is sent within 30 days of paying someone, or where the FPS is late but payments on it are within 3 days of payday.

Doing it yourself vs using us

Employers with fewer than 10 employees can use HMRC's free Basic PAYE Tools to calculate pay and send RTI reports, and many directors of one-person companies do exactly that. Using us adds the monthly calculation and filing, a check on thresholds and allowances, payslips and P60s, one portal for every receipt, and reminders so the 22nd payment date is not missed. It helps most if you live outside the UK, have staff with changing hours, or would rather not track the rules each April.

Sources

• GOV.UK: Register as an employer
• HMRC manual: PAYE20020
• GOV.UK: Running payroll, reporting to HMRC
• GOV.UK: Running payroll, reporting to HMRC: EPS
• HMRC: Rates and thresholds for employers 2026 to 2027
• GOV.UK: Employment Allowance
• GOV.UK: Employment Allowance eligibility
• HMRC: Single-director companies and Employment Allowance
• HMRC: What happens if you do not report payroll information on time
• GOV.UK: Basic PAYE Tools
• The Pensions Regulator: Duties for new employers
• The Pensions Regulator: Automatic enrolment earnings thresholds
• The Pensions Regulator: Making contributions to your pension scheme
• The Pensions Regulator: Directors and automatic enrolment

Fees, deadlines and rules on this page were last checked on 27 September 2026.