Can I pay employee outside of payroll system

I have a new employee who only worked 4 days, at 3 hours per day, total 12 hours payable.

Can I pay them the gross rate without going through the payroll as it is such a small amount or do I have to process them properly?

I think I know the answer but as it is likely to happen quite a lot I am hoping I could just make things a bit simpler. Our recruitment procedure is quite long winded and as the amount would fall under the Paye and NIC thresholds I want to make processing this kind of stop/starter easy. I would welcome any advice.

Thank you.


  • davealucas
    davealucas Registered Posts: 140 Dedicated contributor 🦉
    No is the simple answer.

    Although the employee's income is below the tax allowance and below NIC thresholds, the income is still "taxable" and should be reported in the same way as any other employee

    In additional, until you know the employee's tax code you also have to charge emergency tax.
Privacy Policy