Payroll software for charities

Payroll software for charities and non-profits

Pay part-time staff properly, keep trustees and auditors happy, and claim everything you are entitled to, on a budget your funders will not question.

  • Recognised by HMRC
  • £15/month, 10 employees included
Payslip previewOctober 2026
Gross pay (0.6 FTE)£1,500.00
Pension (5%)−£75.00
Income Tax−£75.50
National Insurance−£36.20
Take-home£1,313.30

Grace Adeyemi · Youth programme · £18,000 a year

Department breakdown

Costs by project or fund, every month

HMRC PAYE recognised
30-day free trial
Every feature, one plan
UK data residency
Why PayAdjust

Charity payroll runs on the same rules, with less slack

A registered charity that employs staff is an employer like any other in HMRC’s eyes. PAYE, Real Time Information, workplace pension auto-enrolment and statutory pay all apply in full. What is different is the context: part-time and variable hours, trustees who are personally responsible for the numbers, funders who want staff costs allocated to the right project, and a budget line for software that has to be justified.

PayAdjust is priced for small teams and built to be run by whoever has the job this year. £15/month covers up to 10 staff with every feature. Costs can be broken down by department, which charities use for projects or restricted funds. Every change is in an audit log that trustees and auditors can read, and Employment Allowance, which most charities can claim, is filed on your EPS in one click.

Priced for small teams

£15/month with every feature, and lower on annual billing. A charity with four part-time staff pays the same base price as a business with ten.

Costs by project or fund

Assign each employee to a department and see payroll cost, headcount and average salary per department, every month, for funder reports.

An audit trail for trustees

Every edit, approval and HMRC submission is logged with who did it and when. Give a trustee or your independent examiner read access to the real thing.

Employment Allowance claimed

Charities are generally eligible for Employment Allowance against employer National Insurance. Tick the box and PayAdjust files the claim with HMRC.

What you need

What charity payroll has to handle

The obligations are standard. The patterns, part-time hours, grant-funded posts and volunteer boundaries, are what make charity payroll its own thing.

  • 01

    Part-time and pro-rata pay

    Salaries are entered as annual amounts, and mid-month starters and leavers are pro-rated automatically. Extra hours are logged by the employee as overtime and approved by you.

  • 02

    Auto-enrolment for low and variable earners

    Each employee is assessed against the earnings trigger every month, so someone who crosses the threshold with extra hours is picked up. Entitled workers who ask to join are handled too.

  • 03

    Staff costs allocated to funds or projects

    Department breakdown reports show gross pay, employer NI and pension per department, exportable as CSV for restricted-fund reporting.

  • 04

    Statutory pay for a small team

    Sick, maternity, paternity, adoption and parental bereavement pay from the dates, with recovery and small employers’ relief claimed on your EPS.

  • 05

    Expenses for volunteers and staff, kept apart

    Employee expense claims with receipts are approved and reimbursed through payroll. Volunteers are not employees and stay outside it.

  • 06

    Oversight without hand-outs

    Trustees or your examiner can be given admin access to see pay runs, reports and the audit log directly, rather than receiving spreadsheets.

  • 07

    Records kept for the right period

    Payroll records, submissions and HMRC marks are retained with the six-year rule applied, and personal data can be exported or erased in line with UK GDPR.

How it works

Four steps, once a month

  1. Step 01

    Add your team

    Invite employees by email. They fill in their own address, NI number and bank details, so you never chase a form.

  2. Step 02

    Run payroll

    Create the month and every payslip is calculated: PAYE, National Insurance, pension, student loans and statutory pay.

  3. Step 03

    Let employees check it

    Release payslips for preview. Employees see their pay before payday and can adjust pension contributions with live tax impact.

  4. Step 04

    Approve and file

    Approve the run, file the FPS with HMRC in one click, download the BACS file and pension schedule. Done until next month.

Everything included

All 120 features, on one plan

Payroll & Tax

  • Automatic PAYE from tax code and salary
  • Employee & employer NI contributions
  • Student loan deductions (Plan 1, 2, 4, 5 & PG)
  • Pro-rata calculations for mid-month starters
  • Overtime, expenses, and statutory pay in a few clicks
  • One-time and recurring bonus support

Pension & Auto-Enrolment

  • NEST, Workplace, Master Trust & SIPP schemes, or a private pension
  • Worker category assessment dashboard
  • Opt-out window tracking with guided refund steps
  • 3-year re-enrolment monitoring
  • Salary sacrifice, net pay and relief-at-source arrangements
  • Custom pension rates or private pension on a per-employee basis

Filed with HMRC, automatically

  • HMRC-recognised one-click FPS filing over the Government Gateway
  • Real-time response with HMRC mark stored on every submission
  • Friendly rejection cards explain how to fix data issues
  • P60 and P45 generation (with bulk year-end output)
  • Scottish and Welsh tax code support
  • Optional XML download if you’d rather file manually

Employee Self-Service

  • Payslip preview before payday
  • Overtime and expense submissions
  • Holiday requests with live allowance balance
  • Pension adjustment with deadline countdown
  • AI pension advisor with personalised guidance
  • Self-service P60, P45, and payslip downloads

Reporting & Analytics

  • Company calendar with holidays, absences, deadlines, and pay days
  • Dashboard with key metrics at a glance
  • Tax year summaries
  • Payroll cost trend charts over time
  • Department breakdown visualisations
  • Headcount trend and employer cost tracking

Security & GDPR

  • AES-256 encryption for sensitive data
  • Row-level security at the database layer
  • GDPR data export
  • Right to erasure with 6-year retention rules
  • Two-factor authentication required for all users
  • Immutable audit trail for every action
Pricing

One plan. Nothing held back.

Everything included

£15/month

Includes 10 employees, then £2/month each. Pay annually and save 40%.

  • HMRC-recognised RTI filing
  • Pension auto-enrolment
  • Statutory pay and holiday
  • Employee portal and AI advisor
  • 30-day free trial, cancel anytime
Start 30 days free

What it costs at your size

EmployeesMonthlyAnnual
4£15/mo£108/yr
10£15/mo£108/yr
20£35/mo£288/yr

Most small charities sit inside the included seats. Annual billing is the cheaper option if your budget is set once a year.

Full pricing details
The guide

Payroll rules are the same for charities

There is no charity exemption from PAYE or from Real Time Information. If you pay anyone a salary, you register as an employer, deduct tax and National Insurance, file an FPS on or before each payday, and assess staff for a workplace pension. Trustees are usually unpaid and outside payroll; where a trustee is paid for services under the charity’s governing document, that payment may need to go through PAYE, so take advice.

Volunteers are not employees. Reimbursing their actual out-of-pocket expenses does not create employment and does not go through payroll. Paying them a flat amount that exceeds their expenses can, which is why charities keep a clear line between the two.

Employment Allowance for charities

Employment Allowance reduces the employer National Insurance you pay each year. Charities, including community amateur sports clubs, are eligible unless excluded for another reason, and for a small charity it can wipe out the employer NI bill entirely. The claim is made on an Employer Payment Summary once per tax year. In PayAdjust you tick the box in your HMRC settings and file the claim in one click; the allowance is then applied against your monthly liability automatically.

Reporting to trustees and funders

Funders want to know what a grant paid for, and trustees are responsible for the accounts. Assigning each employee to a department lets you report payroll cost per project or fund each month, including employer NI and pension, which is the figure that belongs in a full-cost recovery calculation. The employer cost report gives the all-in figure for the organisation, and everything exports to CSV for your accounts package or your independent examiner.

Part-time and variable hours

Most charity staff are part-time, and many have hours that change with funding. PayAdjust takes an annual salary and pro-rates mid-month starts and leavers automatically. Extra hours are logged as overtime by the employee, approved by you, and paid on the next payslip. Because auto-enrolment is assessed every month, someone who crosses the earnings trigger with extra hours is picked up rather than missed.

Where PayAdjust does not fit

PayAdjust runs monthly pay periods, so if your staff are paid weekly it is not the right tool. Payroll Giving (Give As You Earn) deductions are not supported. Gift Aid is not a payroll matter. If your charity has more than a hundred staff or complex multi-employer arrangements, you will want something built for that scale.

FAQs

Questions we get asked

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Run your first payroll this month

Set up in an hour, file with HMRC in one click, and give your people a payslip they can read.

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