From the time account to the payroll run
Between time tracking and payroll lies the most error-prone handover in the whole of HR administration: premiums, overtime, allowances and absences all have to be valued correctly and passed on.
This topic hub explains which pay elements arise from time data, how tax treatment of unsocial-hours premiums (night, weekend and bank holiday pay) works under HMRC rules, and what to watch out for when exporting to your payroll bureau or another payroll accounting system.
Employer guide to employment references under UK employment law: Duty of care, factual vs detailed references, discrimination risks, defamation, and ACAS guidance.
6 min readBeginnerUnderstand gross pay, net pay, and total employer cost in the UK: PAYE income tax, employee and employer National Insurance, pension contributions, and the path from workforce budgeting to payslip payout.
7 min readBeginnerHR annual planning: monthly routines, quarterly milestones, and event-driven UK HR compliance deadlines – from statutory leave notifications to tax year-end filing and data retention audits.
9 min readBeginnerUnderstand pay elements, wage types, and payroll records in the UK: control characteristics of pay codes, number ranges, statutory HMRC rules, record retention, and audit compliance.
7 min readBeginnerStructure employee offboarding effectively: notice periods, PILON and garden leave, asset recovery, IT access revocation, accrued annual leave, final pay, P45, and references.
7 min readIntermediateCalculate employee costs: Total employer labour cost including employer National Insurance and pension contributions, overheads, cost per productive hour, and strategic budgeting.
6 min readIntermediateProbationary periods in UK employment contracts: lawful duration, contractual notice periods under ERA 1996, unfair dismissal qualifying rules, fixed terms, and extension best practices.
6 min readExpertGuide to reimbursing business travel expenses under UK law: permanent vs temporary workplaces, HMRC subsistence benchmark scale rates, mileage allowance payments (MAPs), overnight accommodation, and Working Time Regulations 1998.
10 min readIntermediateNavigating non-cash benefits and benefits in kind (BiK) in the UK: trivial benefits exemption rules, salary sacrifice rules (OpRA), annual staff parties, company cars, cycle to work schemes, and HMRC compliance.
7 min readBeginnerComprehensive UK employer guide to Statutory Sick Pay (SSP): Qualifying conditions, the 3 waiting days rule, self-certification, fit notes, record-keeping, and payroll integration.
5 min readIntermediatePaying out overtime vs. time off in lieu (TOIL) in the UK: PAYE and National Insurance treatment, tax band progression effects, balance sheet accruals for time credits, and employer compliance considerations.
7 min readTravel authorisation, subsistence allowances, mileage, and accommodation in a single form
EXCEL · PDFDownloadFrom contract signing to the end-of-probation review
EXCEL · PDFDownloadRecurring HR deadlines and statutory milestones at a glance
EXCEL · PDFDownloadSeven phases from notice of termination to post-exit
EXCEL · PDFA bank holiday premium is an enhanced pay rate (such as double time or time and a half) paid to employees working on a public or bank holiday. In the UK, enhanced pay for bank holiday working is not a statutory right, but depends entirely on the employment contract, subject to statutory minimum wage rules.
A benefit in kind (BiK) is any non-cash benefit or perk of monetary value provided by an employer to an employee. BiKs are generally subject to Income Tax and Class 1A National Insurance contributions (NICs) unless a statutory exemption applies.
Gross pay is the total remuneration an employee earns before statutory deductions such as PAYE Income Tax and National Insurance contributions (NICs). Taxable gross and NIC-liable gross can differ from total gross pay.
Employment where earnings or hours are low, often falling below key National Insurance and workplace pension thresholds (such as the Lower Earnings Limit), whilst remaining fully subject to National Minimum Wage and Working Time Regulations.
The National Minimum Wage (NMW) and National Living Wage (NLW) represent the legally mandated minimum hourly rates payable to qualifying workers across the UK under the National Minimum Wage Act 1998.
A night work premium (or night shift allowance) is an additional payment made on top of standard pay for hours worked during the night. In the UK, it is governed by employment contracts, National Minimum Wage rules, and the Working Time Regulations 1998.
Overtime refers to hours worked beyond the contractually agreed standard working hours. It must be remunerated or compensated with time off in lieu (TOIL) in accordance with the employment contract and statutory minimum wage requirements.
Payroll records (Lohnkonto) represent the mandatory statutory record that employers must maintain for each employee and tax year, documenting all gross pay, taxable benefits, statutory payments, and deductions under the PAYE Regulations 2003.
Under a salary sacrifice arrangement (also known as salary exchange), an employee contractually agrees to reduce their contractual gross cash remuneration in return for the employer providing a non-cash benefit, most commonly qualifying workplace pension contributions, resulting in tax and National Insurance savings.
Short-time working is a temporary reduction in an employee's contracted working hours due to a downturn in business. Eligible employees may receive Statutory Guarantee Pay (SGP) under the Employment Rights Act 1996.
The total employer labour cost (gross cost of employment) is the total direct expenditure incurred by an employer, comprising gross wages/salaries plus mandatory employer secondary Class 1 National Insurance contributions, statutory workplace pension contributions, and applicable statutory levies.
A wage type (or pay element) is a unique payroll code categorising a specific remuneration or deduction component. It determines PAYE tax, National Insurance liability, and general ledger posting.
