How to Submit RTI Without Basic PAYE Tools
⚠️ Important: IRIS Payroll Basics Ending April 2026
HMRC has confirmed that Basic PAYE Tools will be discontinued in April 2026. All employers currently using this free software will need to switch to an alternative.
If you've been using HMRC's Basic PAYE Tools to run payroll and submit Real Time Information (RTI), you're probably wondering what to do next. This guide explains your options and how to make the switch with minimal disruption.
What is RTI and Why Does It Matter?
Real Time Information (RTI) is the system HMRC uses to collect PAYE information. Every time you pay employees, you must submit a Full Payment Submission (FPS) to HMRC on or before the payday.
Until now, many small employers have used HMRC's free Basic PAYE Tools for this. But with its discontinuation, you'll need payroll software that can either:
- Submit RTI directly to HMRC — the software connects to HMRC and sends the FPS automatically
- Generate FPS XML files — you download the file and upload it manually via HMRC's Government Gateway
Your Options After Basic PAYE Tools
Option 1: Free/Low-Cost Alternatives
ByteLogic Accounting
Full payroll with payslips, P60s, and FPS XML export — completely free. No credit card required. Direct RTI submission coming in Pro.
- Free: Payroll with payslips & P60s + FPS XML export
- Free: Bookkeeping, P&L & Balance Sheet reports
- Free: Dividends, director's loan tracking, pension auto-enrolment
- Free: Invoicing (up to 10/month), time tracking
- Pro (coming soon): Direct RTI submission to HMRC
- Pro: CT600, Companies House iXBRL, VAT MTD, Open Banking
Primo Payroll (Essentials Free Plus)
Established free payroll software with direct RTI submission.
- Direct FPS/EPS submission to HMRC
- Auto-enrolment pension support
- Limited to 10 employees (including leavers)
- Email support only
Shape Payroll
Simple payroll solution for very small employers.
- Direct RTI submission
- Automatic calculations
- Very limited free tier (3 employees)
- No support on free plan
Option 2: Commercial Software
If you want more features or have more employees, commercial options include:
- FreeAgent (£34/mo) — Full accounting + payroll + RTI
- Xero + Xero Payroll (~£37+/mo) — Popular but payroll costs extra
- Sage Payroll (from £10/mo) — Payroll only, well-established
- BrightPay (one-time £199+) — Desktop software, one payment
Step-by-Step: Switching from Basic PAYE Tools
Export your data from Basic PAYE Tools
Before Basic PAYE Tools shuts down, export your employee records and year-to-date figures. You'll need NI numbers, tax codes, and YTD pay/tax for each employee.
Choose your new software
Based on your needs and budget, select one of the options above. We recommend signing up for ByteLogic's free plan to get familiar with the system before Basic PAYE Tools shuts down.
Set up your employer details
Enter your PAYE reference, Accounts Office reference, and HMRC credentials (if using direct submission). This information is on your P30 or HMRC letters.
Add your employees
Transfer employee details including NI number, tax code, start date, salary, and year-to-date figures. Most software has import tools or you can enter manually.
Run your first payroll
Calculate pay and deductions for the current period. Check the figures match what you'd expect, then submit the FPS (either directly or via manual upload).
Manual vs Automatic RTI Submission
There are two ways to submit RTI to HMRC:
Direct/Automatic Submission
The software connects directly to HMRC and submits your FPS with one click. This is the most convenient option but requires the software provider to be HMRC-registered (vendor credentials).
Who offers this: Primo Payroll, Shape Payroll, FreeAgent, Xero Payroll, Sage, BrightPay
ByteLogic: Coming soon in Pro tier (pending HMRC vendor approval)
Manual Upload (XML)
The software generates an FPS XML file that you download and upload to HMRC via the Government Gateway. Takes a few extra minutes but works immediately without vendor credentials.
Who offers this: ByteLogic (free, available now)
💡 ByteLogic's Approach
ByteLogic's free plan includes full payroll with payslips, P60s, and FPS XML export — upload to HMRC manually in minutes. When our Pro tier launches (pending HMRC vendor approval), you'll be able to submit directly with one click.
Timeline: What to Do When
- Now: Sign up for ByteLogic free — run payroll, generate payslips & P60s, and export FPS XML files today.
- Before April 2026: Export your data from Basic PAYE Tools. Set up your new software and get comfortable.
- April 2026: Basic PAYE Tools shuts down. Use your new software for RTI submission (manual XML upload free, direct submission coming in Pro).
Frequently Asked Questions
Will HMRC provide another free tool?
HMRC has not announced a replacement for Basic PAYE Tools. They expect employers to use commercial software. However, free options like ByteLogic do exist.
Can I still use the HMRC Government Gateway?
Yes, the Government Gateway for manual XML uploads will continue to work. You just need software that can generate the FPS XML file.
What if I only have 1-2 employees?
Free options like ByteLogic (up to 5 employees), Primo Payroll Free, or Shape Payroll Free should meet your needs without any cost. ByteLogic's free plan includes payslips, P60s, bookkeeping, and more — no credit card required.
Is ByteLogic ready for direct RTI submission?
Not yet. ByteLogic's free plan generates FPS XML for manual upload to HMRC. Direct RTI submission will be available in the Pro tier (coming soon, pending HMRC vendor approval).
Start Using ByteLogic Free Today
Full payroll with payslips, P60s, and FPS XML export — plus bookkeeping, reports, dividends, and more. No credit card required. Up to 5 employees free forever.
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