Director-Only Payroll Service
If you are the only person your limited company pays, you still need a PAYE scheme, RTI submissions to HMRC and the right National Insurance treatment for a director. We run director-only payrolls for small limited companies across the UK: you or your accountant decide the salary, and we handle the rest.
- Since 2011
- 500+ clients
- 5.0 on Google
- From £2.50 + VAT per payslip
- Cyber Essentials certified
What a director-only payroll includes
A one-director payroll is small, but HMRC expects the same filings as any other employer.
Every pay run
- Salary calculated with the correct tax code
- Director’s National Insurance worked out on the annual basis HMRC requires
- A payslip for each director
- RTI Full Payment Submission sent to HMRC on or before payday
- A summary of what to pay HMRC and when
Through the year
- Employer Payment Summaries for months with no pay
- Setting up a PAYE scheme if your company does not have one yet
- Adding a second director or a first employee when you need to
- Auto-enrolment checks and the declaration of compliance where duties apply
- P60s at the end of the tax year
Why director payroll is different
- National Insurance is worked out annually. Directors use an annual earnings period, so NI is calculated on total pay for the year rather than each month on its own. Many payrolls use the alternative arrangement, which spreads it monthly and squares it up at the year end. Get this wrong and NI is over- or under-paid.
- Employment Allowance usually isn’t available. A company whose only employee paid above the secondary threshold is a director cannot claim it. We check whether yours can.
- Auto-enrolment often doesn’t apply. A company whose only staff are directors without employment contracts usually has no auto-enrolment duties, but The Pensions Regulator still expects to hear from you. We check your position.
- Filings don’t stop when pay does. If you pay yourself in some months and not others, HMRC still expects an Employer Payment Summary to show no pay was made.
Common director salary levels for 2026/27
Your accountant decides the right salary for you, usually alongside dividends. These are the 2026/27 thresholds most director salaries are built around.
| Annual salary | What it means |
|---|---|
| £5,000 | The employer (secondary) NI threshold. No employer NI below this. |
| £6,708 | The lower earnings limit. Paying at least this keeps your year counting towards the State Pension, with no NI to pay. |
| £12,570 | The personal allowance and employee NI threshold. No income tax or employee NI if you have no other income, but employer NI at 15% applies above £5,000. |
Figures from HMRC’s rates and thresholds for employers 2026 to 2027. We run the payroll; salary and dividend planning is for you and your accountant.
How much does director-only payroll cost?
We charge per payslip, with no setup fee and no contract.
| Pay frequency | Price per payslip |
|---|---|
| Monthly | from £3.50 + VAT |
| Weekly or fortnightly | from £2.50 + VAT |
- No setup fee
- No contracts
- Written quote first
Small payrolls
A minimum monthly fee applies to very small payrolls, so ask us for a written quote. It will cover your payslips, RTI submissions, year-end and P60s.
See full payroll pricing.
Getting started
Tell us about the company
How many directors you pay, how often and the salary you plan to pay.
PAYE scheme
Send us your PAYE references, or we register a new scheme with HMRC for you.
Set up
We set up the payroll, bring across any pay already made this tax year and get authorised with HMRC as your agent.
Every pay run
We send the payslip, file with HMRC and tell you what to pay and when.
You can move a director payroll to us at any point in the tax year. Taking on your first employee? See first employee payroll. For more detail, read our guide to director-only payroll for limited company directors.
Security and compliance
Payroll data is some of the most sensitive information a business holds. This is how we look after it.
- Registered with the Information Commissioner’s Office since 2011, registration number Z2786276
- Professional indemnity and cyber insurance with Hiscox
- Written UK GDPR data processing terms that set out how we handle your employees’ data
- 2-step verification on every system we use
- Payslips delivered to your employees online and securely
- Cyber Essentials certified (IASME, October 2026)
What our clients say
Rated 5.0 on Google from 16 reviews.
“Excellent professional service always able to speak to somebody when required.”
“We have used Payroll Service for over 10 years… Nothing is too much trouble.”
“Rhys and the team provide an absolutely exceptional service…”
Director-only payroll FAQs
Do I need a payroll if I’m the only director?
Yes, if you pay yourself a salary. Your company needs a PAYE scheme and must report each payment to HMRC through RTI on or before payday. If you only take dividends and no salary, you may not need a payroll, so check with your accountant.
How is National Insurance different for directors?
Directors’ NI uses an annual earnings period, so it is based on total pay for the tax year rather than each pay period on its own. Many payrolls use the alternative arrangement, which works it out each pay period and corrects it at the year end. We apply the right method for you.
Can a director-only company claim Employment Allowance?
Usually not. A company cannot claim Employment Allowance if a director is the only employee paid above the secondary threshold. Once you have another employee above that threshold, the company may become eligible, and we will flag it.
Do I need to auto-enrol myself into a pension?
Often not. A company whose only staff are directors without employment contracts usually has no auto-enrolment duties, but you should tell The Pensions Regulator. Things change once you employ someone, and we handle that when it happens.
What salary should I pay myself?
That is a decision for you and your accountant, usually alongside dividends. Common choices for 2026/27 are £5,000, £6,708 or £12,570 a year. We run the payroll at whatever level you choose.
Can you set up a PAYE scheme for a new company?
Yes. We can register your company as an employer with HMRC and run the payroll from the first payday.
How much does a director-only payroll cost?
From £3.50 + VAT per payslip for monthly pay, with no setup fee or contract. A minimum monthly fee applies to very small payrolls, so we confirm your price in a written quote.
Get a quote for your director payroll
Tell us how many directors you pay and how often, and we will send a written price.
Or email sales@payrollserviceuk.co.uk