Payroll software for one employee

Payroll software for one employee (your first hire)

Hired your first member of staff? You now need a PAYE scheme, a workplace pension assessment and an FPS every month. PayAdjust does all three for £15/month, and your employee gets a proper payslip.

  • Recognised by HMRC
  • £15/month, 10 employees included
Payslip previewOctober 2026
Gross pay£2,166.67
Pension (5%)auto-enrolled−£108.33
Income Tax−£202.17
National Insurance−£89.53
Take-home£1,766.64

Tom Okafor · your first hire · £26,000 a year

Auto-enrolment assessed

Eligible jobholder · enrolled from day one

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

One employee, the same rules as a hundred

HMRC does not have a smaller rulebook for small employers. From the day your first employee starts, you must register as an employer, operate PAYE, send a Full Payment Submission on or before every payday, assess them for a workplace pension, give them a payslip, and produce a P60 in April. Miss the FPS and the penalties are the same ones a company with a hundred staff would get.

What is different is how much of your time this deserves. PayAdjust is priced and built so that one employee takes a few minutes a month: £15/month covers up to 10 people, and the first 30 days are free. Your employee gets a login for payslips and pension changes, and you get an HMRC-recognised system that files for you.

Priced for one

£15/month includes up to 10 employees, so with one person on the payroll you pay the base price and nothing else. Add a second hire later at no extra cost.

Nothing to learn first

A setup checklist walks you through PAYE references, pension scheme and your first employee. Each step says what you need and where to find it.

Pension duties done

Your employee is assessed against the auto-enrolment thresholds automatically, enrolled if eligible, and their contribution schedule is produced for your provider.

Grows when you do

Invite the second and third hire when they come. Holiday, absence, expenses and the employee portal are already there waiting for them.

What you need

What you have to do when you employ one person

This is the full list of employer obligations for a single employee, and how each one is handled.

  • 01

    Register as an employer with HMRC

    You do this once on GOV.UK and receive a PAYE reference and Accounts Office reference. PayAdjust’s setup checklist tells you the format and where to find them on HMRC’s letters.

  • 02

    Collect starter information

    Your employee completes their own starter declaration, P45 details if they have one, address, NI number and bank details through their invite.

  • 03

    Work out tax, NI and student loans every month

    Calculated from their tax code and salary with the current year’s rates. Pro-rata is applied automatically if they start mid-month.

  • 04

    Send an FPS on or before payday

    One click files it with HMRC. You see the acceptance in seconds, and the HMRC mark is stored with the run.

  • 05

    Assess for a workplace pension

    Automatic assessment against the earnings trigger and age bands, enrolment, opt-out window tracking and the provider schedule.

  • 06

    Give a payslip and a P60

    Payslips are generated each month and available in your employee’s portal. P60s are produced for them after the tax year ends.

  • 07

    Keep records for three years

    Every payslip, submission and change is kept with an audit trail, and exportable if HMRC ever asks.

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
1£15/mo£108/yr
3£15/mo£108/yr
5£15/mo£108/yr

With one to 10 employees the cost is the base price. You will not pay for a second seat until you have an eleventh employee.

Full pricing details
The guide

Do I need payroll software for just one employee?

You need something. Real Time Information means every payday has to be reported to HMRC electronically, and that cannot be done on paper. Your options are an accountant, HMRC’s free Basic PAYE Tools, or payroll software you run yourself.

For one employee, an accountant will often cost more per month than the software and adds a delay whenever something changes. Basic PAYE Tools is free and handles the FPS, but it is desktop software, does not assess your employee for a workplace pension, and gives them nothing to log in to for payslips or P60s. Payroll software is the middle path: a small fixed cost, the pension and statutory work done for you, and a payslip your employee can see for themselves.

Setting up payroll for your first employee

  • Register as an employer on GOV.UK before the first payday. HMRC sends your PAYE reference and Accounts Office reference by post, which can take a couple of weeks.
  • Choose a pension scheme. You need one if your employee is eligible for auto-enrolment, and you should have one ready either way. PayAdjust supports NEST, master trusts, workplace schemes and SIPPs.
  • Enter the references and invite your employee. They complete their own details, including a starter declaration or P45 figures.
  • Run the first month. Check the payslip, release it for preview if you like, approve, file the FPS and download the BACS file for your bank.
  • Claim what you can. If you are eligible for Employment Allowance, PayAdjust files the claim on your EPS. Note that a company whose only employee is also its director cannot claim it.

Paying less than the Lower Earnings Limit

If your only employee earns below the Lower Earnings Limit, has no other job and receives no pension, you may not need a PAYE scheme at all, although you must still keep records. The moment their pay crosses the threshold, or they take a second job, you do. Most employers find it simpler to run proper payroll from the start than to work out whether the exception applies each month.

Nannies, carers and other household employees

Employing someone in your home is employment like any other: you register as an employer, operate PAYE and assess them for a pension. PayAdjust works the same way for a household employer as for a business. The only thing to know is that PayAdjust runs monthly pay periods, so if you have agreed weekly pay you will need to pay monthly or use a different tool.

FAQs

Questions we get asked

30-day free trial · No contracts

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.

Start 30 days free