Payroll - Frequently Asked Questions

Do I have to run payroll?

You don't need to set up payroll if you don’t have any employees and the company doesn’t pay you a salary. If the company has a PAYE scheme (e.g. because the company is reimbursing expenses) then you should be running payroll and filing RTI.

Can I use other payroll software with FreeAgent?

You might have previously used FreeAgent's payroll alongside another payroll system. You can continue to do this and create payslips in FreeAgent but not file them.

Can I only run payroll one month at a time?

You should run your payroll in FreeAgent once each month. It’s likely that you’ll need to make adjustments to your payroll throughout the year eg. employees leaving/new employees starting work or changes to items like overtime, commission or bonuses.

What is RTI?

RTI stands for Real Time Information and it's the new way to report wages, salaries, PAYE and National Insurance to HMRC. Traditionally, PAYE data would be submitted at the end of the tax year, but the new changes will require data to be submitted to HMRC online whenever employees are paid.

Learn more by downloading our free 'Getting ready for RTI' white paper.

How does RTI work in FreeAgent?

FreeAgent will submit your RTI for you as part of your payroll. You'll need to enter your Government Gateway ID details when prompted after running each monthly payroll.

What gets sent to HMRC in my RTI submission?

For an RTI submission to HMRC, FreeAgent will send information you've entered into each individual payroll profile, payslip information (including Tax and NI calculations) and also some of your company information.

Can my accountant run payroll and submit RTI?

If your accountant is a user of your FreeAgent account (with a user type of Accountant) they can run your monthly payroll and also make RTI submissions using their HMRC agent login details.

Payroll Profiles

‘New Employee’ or ‘Existing Employee’?

When first setting up your payroll in FreeAgent at the start of the tax year (eg. starting April 2013) add any existing members of staff as ‘existing employees’ when creating their payroll profiles.

If an employee joins the company sometime during the tax year, then add them as a ‘new employee’.

How do I mark an employee as having left the company?

If an employee leaves the company and you need to remove them from the payroll you simply need to edit their payroll profile, and add a leaving date. Once this leaving date is sent to HMRC this user cannot be paid again, so please don't enter the leaving date in the profile until either you have paid your employee for the last time or you intend to do so in the current pay period. Remember to pro rata the final payslip if required.

FreeAgent will include the leaving details in your next RTI submission to HMRC.

If a former employee returns to my business, how do I add them back to the payroll?

If the employee returns in the same tax year as they left your business, you should add them as as a new user, then create a new payroll profile for them. You shouldn't use their existing payroll profile. If the employee returns in a future tax year, however, you should use their existing user and payroll profiles.

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