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Set up UK bank payment files and pay HMRC in bulk

UK payroll admins can now generate payment files for 21 supported banks and include HMRC as a recipient in the same bulk payment run. This streamlines paying employees and HMRC, saving time and reducing manual work.

Before you start, make sure your business has an accounts office reference set up in HMRC setup to use the Pay HMRC option.

This article explains how to:

Set up a UK bank payment file

Create a payment file for your chosen UK bank using the expanded list of 21 supported formats.

Steps to create a bank payment file
  1. Log in to Employment Hero.
  2. Go to Settings > Payment Files.
  3. Select Add new payment file.
  4. In the bank format dropdown, choose your bank. The list shows all 21 supported formats, sorted alphabetically by bank name (if enabled for your business).
  5. Enter the required details for your selected bank format. Fields may include sort code, account number, account name, submission reference, and Service User Number (SUN) as required by the format.
  6. (Optional) Choose what extra information to append to your submission reference, such as pay period ending, payment date, pay run ID, or employee ID.
  7. Select Save to create the payment file. A confirmation message will appear if successful.
  8. If you wish to cancel before saving, select Cancel to discard your changes.

Include HMRC as a payment recipient

Add HMRC as a recipient in your payment file to pay HMRC alongside employees in a single bulk payment.

Steps to add HMRC to your payment file
  1. While adding or editing a payment file (Settings > Payment Files), locate the Pay HMRC checkbox.
  2. Select the Pay HMRC checkbox. HMRC's sort code, account number, and account name will appear, pre-filled and locked.
  3. The payment date defaults to the 6th. To change it, open the payment date dropdown and select any date from the 6th to the 22nd.
  4. (Optional) Select the information icon next to the payment date to see a tooltip explaining that if your chosen date falls on a non-banking day, the payment file will be created for the previous working day.
  5. If you deselect Pay HMRC, the HMRC fields will be hidden and no confirmation prompt will appear.
  6. Select Save to include the HMRC payment in your payment file. A confirmation message will appear if successful.
  7. If you cannot select Pay HMRC, ensure your accounts office reference is set up in HMRC setup. A message and link will guide you if this is missing.

Download a payment file for HMRC from the P32 report

If you have enabled Pay HMRC in your payment file settings, you can download a payment file for HMRC directly from the P32 report.

Steps to download a payment file from the P32 report
  1. Log in to Employment Hero.
  2. Go to Payroll > P32 Report.
  3. Find the relevant pay period row where you have enabled Pay HMRC and there is a non-zero HMRC payment amount.
  4. In the Payment dropdown column, select Download payment file.
  5. The payment file for HMRC will be generated and downloaded for that pay period.

Further information

Get help from the Employment Hero Community

If you are looking for further ideas, try our community.

What if I can't see my bank in the list?
If your business does not have access to the expanded list of payment file formats, only the original four banks (Barclays, HSBC, NatWest, Standard) will appear. Contact your Employment Hero representative to request access to additional formats.
Why can't I select Pay HMRC?
You must have an accounts office reference set up in HMRC setup to enable the Pay HMRC option. If this is missing, a message and link will guide you to set it up.
What happens if I try to save a payment file with missing required fields?
If any required fields are left blank, an error message will appear under each missing field and the payment file will not be saved until all required information is entered.
Can I use letters and numbers in the Service User Number (SUN) field?
Yes, the Service User Number (SUN) field now accepts both letters and numbers for supported BACS payment file formats.

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