Before you can file payroll for a particular pay period to HMRC, you need to prepare your employees’ payslips for that period.
To do this, navigate to the ‘My Money’ tab at the top of the screen and select ‘Payroll’ from the drop-down menu.
The payroll dashboard highlights recent payroll activity, displays actions that you need to take and summarises useful data for the year.
Select ‘Prepare Month [X] Payroll’ in the top-right of the screen. ‘X’ will be the number of the month for which you’re filing payroll. For example, if you’re filing payroll for the first month of the tax year (6th Apr - 5th May), you’ll see ‘Prepare Month 1 Payroll’.
Payslips will be prepared for employees based on the information entered into their payroll profiles.
How to run payroll
1. Choose a date for your pay period
Next, enter the date that the business is going to pay its employees using the calendar. HMRC requires that the RTI submission is made on or before this date. Ensure that this date is correct before filing the payroll.
This date defaults to the 25th for the first month you run payroll in FreeAgent. If you change this date on a submission, it will default to the new date when you prepare payroll for the following month.
If the current month ends on the 30th and you select this date, then by default the following month will also process the payroll on the 30th. If you choose the 31st the following month, FreeAgent will recognise this and start processing subsequent payrolls at the end of the month, regardless of whether the month ends on the 28th, 29th, 30th or 31st.
2. Review the payslips
Check that the information on the payslips is correct.
To edit a payslip, select ‘Edit Payslip’ to the right of the relevant employee’s name. You can edit each employee's monthly pay, statutory pay, deductions, and pension contributions. Please note that any changes made here will only update the details of this month’s submission and not update the individual's payroll profile.
Once all of the information is correct, select ‘Save Changes’.
3. Double-check everything
Using the checklists provided, make sure that you’ve made any necessary changes to your payroll profiles such as adding employee leaving dates, making changes to tax codes or updating student loan settings. Also, make sure that all of your employees are included on the payroll and that the payslips are correct for each employee who is receiving a salary payment this month.
4. File the payroll to HMRC
Once you have entered all the required information, select ‘Run & Report Month [X] Payroll’ at the bottom of the screen.
Please note that if you or your accountant file payroll outside of FreeAgent, you can mark payroll as filed in FreeAgent without making an RTI submission to HMRC by ticking the ‘Don’t report Month [X] payroll to HMRC’ box.
Alternatively, select ‘Run & Report Month [X] Payroll' in the top-right of the screen.
FreeAgent is registered with the Financial Conduct Authority under the Payment Services Regulations 2017 (register no. 799763) for the provision of account information services.
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