Your first payroll: what to expect
What we do on the first payroll run and what you need to do
Your first payroll run sets up the pattern for all future months. Here is what happens and what you need to confirm.
What we do on the first run
We create your employee record in Xero Payroll with your name, National Insurance number, tax code from your P45 or starter declaration, and salary. We run the first payroll, calculate the correct PAYE and National Insurance contributions (NIC), generate your payslip, and submit the Full Payment Submission to HMRC. We confirm the first net pay amount and the PAYE liability due to HMRC.
What you do
Transfer your net salary to your personal bank account on the pay date. Pay the PAYE liability (Income Tax plus Employee and Employer NIC) to HMRC by the 22nd of the following month using the reference we provide. Reconcile both payments in Xero during bank reconciliation.
💡 Important: The first PAYE payment is often the one most commonly missed by new directors because it is due a month after the first payroll, not immediately. Mark the 22nd in your calendar.
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