Odoo payroll in United Kingdom
Every United Kingdom payroll item that has to land in a salary rule, a bank file, or a statutory report, printed in full with its verification state.
5 items Printed as checked, not condensed.
What United Kingdom payroll has to calculate, withhold and file
Each item below becomes a salary rule, a bank file, or a report we test before the first live run.
- 1
For 2026 to 2027 employer Class 1 National Insurance is 15% on earnings above the secondary threshold of 5,000 pounds a year (96 pounds a week, 417 pounds a month). Employment Allowance is 10,500 pounds.
- 2
Employee Class 1 National Insurance on the standard category A is 0% up to the primary threshold, 8% from the primary threshold to the upper earnings limit and 2% above it.
- 3
Employers must operate PAYE to collect income tax and National Insurance from pay.
- 4
Minimum automatic enrolment pension contributions are 8% of qualifying earnings, of which the employer must pay at least 3% and the employee 5%. Qualifying earnings run from 6,240 to 50,270 pounds a year.
- 5
Payrolling benefits in kind becomes mandatory from 6 April 2027, starting with company cars, car fuel, vans, van fuel and employer-provided medical benefits. Most remaining benefits follow from April 2028. The original start date was April 2026 and was put back.
Checked Localization notes on this page checked on 22 August 2026.
Rates, formats, thresholds and submission windows change. We configure against the rules in force at build time and confirm every figure with your accountant or tax advisor before sign-off. If a rule moves after go-live, it is a support ticket, not a rebuild. Read more on our Odoo localization service.
How we build payroll for United Kingdom
The delivery method behind the list above. The same four steps on a 10-user rollout and on a multi-company programme, with the depth scaled to the scope.
- 1 Rules, not hard-coded numbers. Contributions and deductions are built as Odoo salary rules with dated parameters, so a rate change is a configuration edit rather than a code release.
- 2 Employee data gets audited first. Bank details, national identifiers, start dates and contract types. Bad master data is why most payroll go-lives slip, and it is cheap to fix early.
- 3 One parallel run, minimum. We run at least one cycle alongside your current system and reconcile it line by line with your HR and finance leads before switching over.
- 4 Bank files tested with the bank. Payment files and statutory reports are generated from Odoo and put through your bank as a test batch before the first live run.
What we need from you to quote it
Bring these to the first call and you get a scoped, priced payroll plan for United Kingdom instead of a range.
- โ A full payslip for each contract type you run, from your current system.
- โ Your employee master file, including bank details and identifiers.
- โ The reports and files you submit today, and who you submit them to.
Services behind this work
The rest of the United Kingdom localization detail
Each topic has its own page with the full item list, the same way this one does.
Full detail, printed as checked.
Accounting and tax in United KingdomFull detail, printed as checked.
Payments in United KingdomFull detail, printed as checked.
Shipping in United KingdomFull detail, printed as checked.
United Kingdom country overviewServices, modules, client work and delivery for United Kingdom.
Payroll in other markets we cover
Running the same rollout across borders? These pages carry the same depth for each market, so you can compare before scoping a multi-country phase.
Scope payroll for your United Kingdom rollout.
Send us the list above with your answers against it. We come back with what is configuration, what is a connector, and what is a build, priced before the project starts.