Payslip Fraud: What UK Employers Need to Check in 2026
PREPARED FOR | Website developer upload | PUBLICATION | 25 August 2026 |
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Title | Payslip Fraud: What UK Employers Need to Check in 2026 |
Short Description | HMRC has issued new guidance on payslip fraud. This checklist explains what UK employers should check in payslips, payroll records and HMRC reports. |
URL Slug | payslip-fraud-uk-employer-checklist |
Meta Title | Payslip Fraud: UK Employer Checklist | Number One Accounting |
Meta Description | Learn how UK employers can reduce payroll errors, issue compliant payslips, check deductions and keep accurate PAYE records under HMRC guidance. |
Category | Payroll & Employment |
Tags | Payroll, Payslips, PAYE, HMRC, UK Employers, Small Business |
Author | Number One Accounting Editorial Team |
Publish Date | 25 August 2026 |
Image Alt Text | UK employer reviewing employee payslips and payroll records for accuracy |
DEVELOPER NOTE Use the title field as the page H1. Use the main article sections as H2 and the numbered checks and FAQ questions as H3. Keep all bullet lists and numbered steps as real HTML lists. Upload the supplied featured image without adding text, logos or overlays. The complete article begins on the next page. |
Payslip Fraud: What UK Employers Need to Check in 2026
Published: 25 August 2026 | Author: Number One Accounting Editorial Team
HMRC published new guidance on 25 August 2026 explaining how workers can recognise and report suspected payslip fraud.
The guidance is particularly relevant to agency workers, temporary workers, contractors and people paid through umbrella or payroll companies. However, the underlying payroll controls are important for every UK employer.
Accurate payslips, correctly reported deductions and reliable payroll records help protect employees while reducing the risk of payroll disputes, HMRC reporting errors and unexpected liabilities.
What Is Payslip Fraud?
Payslip fraud can occur when a worker receives:
A payslip showing deductions that have not been paid to HMRC
Incorrect information about their pay or deductions
A CIS deduction statement showing deductions that have not been paid
No payslip at all
A payslip may look genuine even when the amounts shown have not been reported or paid correctly.
Problems may only become visible when a worker checks their National Insurance record, claims a benefit, applies for a tax repayment or reviews their pension contributions.
What Must a UK Payslip Include?
UK employers must provide employees and workers with a payslip on or before payday. It can be provided electronically or as a printed document.
A payslip must show:
Gross pay before deductions
Deductions such as Income Tax and National Insurance
Net pay after deductions
Hours worked when pay varies according to time worked
Payslips can also include the employee's tax code, National Insurance number, rate of pay, pension contributions and year-to-date totals.
The figures shown should agree with the employer's payroll records and the information reported to HMRC.
Eight Payroll Checks for UK Employers
1. Confirm Who Is Responsible for Payroll
Businesses using agencies, umbrella companies, outsourced payroll providers or labour suppliers should be clear about who employs the worker, who processes the payroll and who pays deductions to HMRC.
Responsibility should not become unclear simply because several businesses are involved.
2. Provide a Payslip for Every Pay Period
Employees and workers should receive a payslip on or before every payday.
Missing payslips, unexplained format changes or lost access to an online payslip portal should be investigated promptly.
3. Check the Employee's Details
Make sure the payslip contains the correct:
Employee name
Employer or payroll provider details
Pay period
Tax code
National Insurance category
Gross and net pay
Pension information, where applicable
Incorrect personal or payroll information can affect deductions and the employee's HMRC records.
4. Reconcile Pay and Deductions
The gross pay, deductions and net pay shown on the payslip should agree with:
Payroll calculations
Employee working hours
Employment terms
Bank payments
Pension records
HMRC payroll reports
Unexplained deductions such as vague administration adjustments should not appear without a proper explanation.
5. Submit the Full Payment Submission on Time
Employers use payroll software to send a Full Payment Submission, known as an FPS, to HMRC.
The FPS reports employee pay and deductions. It should normally be submitted on or before the employee's payday.
If an error is identified after submission, the employer should correct it as soon as possible through the appropriate payroll process.
6. Check Amounts Owed to HMRC
After payroll has been processed, employers should check that the PAYE and National Insurance amounts recorded by HMRC agree with their payroll reports.
Payments should then be made by the applicable HMRC payment date.
Regular reconciliation helps identify missing submissions, duplicated payroll reports and incorrect deductions before they become larger problems.
7. Keep Complete Payroll Records
Employers must keep records showing:
What employees were paid
The deductions made
Reports submitted to HMRC
Payments made to HMRC
Employee tax codes
Sickness and leave records
Taxable expenses and benefits
PAYE records generally need to be retained for three years from the end of the tax year to which they relate.
8. Take Employee Questions Seriously
An employee may notice a problem before the employer or payroll provider does.
Concerns about missing payslips, unexpected deductions, incorrect tax codes, pension contributions or differences in net pay should be checked against the payroll system and HMRC reports.
A quick investigation can prevent repeated errors across several pay periods.
Warning Signs Employers Should Investigate
HMRC identifies several warning signs that may indicate payroll or labour supply problems:
Payslips regularly changing format
Different employer or payroll company names appearing without explanation
Employees being moved between payroll providers frequently
Vague or unexplained deductions
Net pay not matching the hours worked
Employees no longer receiving payslips
Employees losing access to their payslip portal
Pension deductions not reaching the pension provider
Tax or National Insurance deductions not matching HMRC records
One warning sign does not automatically prove fraud, but it should not be ignored.
What Should Employees Check?
Employees can help identify problems by checking each payslip carefully.
They should confirm that:
Their name and personal information are correct
The employer and payroll provider details are accurate
Their tax code appears correct
Tax and National Insurance deductions look reasonable
Pension deductions match their pension records
Net pay agrees with their hours, salary and employment terms
Employees can compare payslip deductions with information held in their Personal Tax Account, the HMRC app, their National Insurance record and, where applicable, their Student Loan account.
What Should an Employer Do If There Is a Difference?
If a payslip, payroll report or HMRC record does not match:
Review the employee's payroll information.
Check the original payroll calculation.
Compare the payslip with the submitted FPS.
Confirm that PAYE, National Insurance and pension payments were made correctly.
Correct any payroll or FPS error promptly.
Explain the correction clearly to the employee.
Keep a record of the issue and the action taken.
Suspected deliberate fraud should be reported to HMRC through the official reporting process.
How Number One Accounting Can Help
Managing payroll involves more than transferring wages to employees. Every pay period requires accurate calculations, clear payslips, reliable records and timely HMRC reporting.
Number One Accounting supports UK businesses with:
Payroll processing
Employee payslips
PAYE and National Insurance calculations
HMRC payroll submissions
Workplace pension processing
Payroll record management
Ongoing support from a dedicated Relationship Manager
Whether you are employing your first member of staff or managing a growing team, professional payroll support can help you maintain accurate records and reduce unnecessary administration.
Contact Number One Accounting to discuss the right payroll support for your business.
Frequently Asked Questions
When must an employer provide a payslip?
Employees and workers must normally receive their payslip on or before payday.
Can payslips be provided electronically?
Yes. Employers can provide printed or electronic payslips.
When must an FPS be submitted?
A Full Payment Submission should normally be sent to HMRC on or before the employee's payday.
How long should PAYE records be kept?
PAYE records generally need to be kept for three years from the end of the relevant tax year.
Do contractors and freelancers have the same payslip rights?
Not always. Payslip rights depend on employment status. Employees and workers are generally entitled to payslips, while genuinely self-employed contractors and freelancers may be treated differently.
What if deductions do not match HMRC's records?
The employee should raise the issue with the employer or payroll provider. The employer should review the payroll calculation, HMRC submission and payment records, then correct any error promptly.
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DISCLAIMER
This article provides general information and does not replace advice based on a business's individual circumstances.
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