What Is a Payroll Number?

Payroll numbers are a unique sequence of letters and numbers that employers can assign to every employee employed by the company. Particularly helpful for large businesses as important personal information can be tied to the number to ensure secure and effective tracking. Although it’s not a requirement under the law for companies to issue the payroll number to employees, many businesses make use of these unique identifiers to safeguard personal information of employees and minimize the chance of errors in the payrolling process. To make it easier for you to understand the ways that a payroll number could help ensure the security of data in your business it is important to understand the payroll number in more detail , and look at the most common issues with payroll numbers.

How do you find a pay number?

The payroll number is found on the payslip typically next to the employee’s name at upper right of the form. The exact number could be different in each business but it may be something like 0123456. When you are deciding on how to format the payroll numbers of your company There aren’t any strict format rules or guidelines but it’s important to choose a uniform method to keep your payroll numbers organized across the company. For instance an HR or payroll supervisor may prefer to separate departments or positions by adding a prefix of letters to the number sequence. If you are using an external payroll program like Mitrefinch’s Flexipay the payroll numbers could be created for you. This can ensure that the formatting process is consistent and minimize the risk of duplicate numbers being generated across the company. Find out the best way to read and comprehend an employee’s pay slip in our comprehensive guide.


What’s the point of a pay-roll number?

Payroll numbers are an individual identifier that may be given to employees for a particular company. All pertinent information regarding an employee, including their name, title and contact information and their job description, working hours as well as their salary and benefits can be connected to their payroll number. This allows businesses to monitor employees’ activities efficiently using one number, which eliminates the need to add unnecessary and possibly private information about their employees in multiple databases. Although it’s not required to give the employees with payroll numbers however, the bigger the company the greater it makes sense to do so.

For a second confirmation of identity A payroll number can reduce the possibility of records being confused when a company employs more than one person who have the same or similar names. Also in the event that an employee’s identity changes throughout their employment (because they were married, for instance) the use of the payroll number can help keep records in order.

How do I get my P6?

HMRC will send you the P6 form if an employee’s tax identification number / tax code changes during the fiscal year. The new tax code must be used from the first day of payment after receiving the notification.


How can I fix my incorrect tax code?

If you think your tax code is incorrect, please contact HMRC who will provide your employer with a revised tax code if necessary. This can be done by call at  0300 200 3300.



How can I get my tax code notice?

1) You can use the facility called Check your income tax for the current year in your Personal Tax Account. You can then explore your tax-free amount and have individual entries changed.

2) You can contact HMRC by phone or post using the contact 

details on GOV.UK.


When will I receive a P6 notice from HMRC?

You will normally receive a notice from HMRC to let you know when a tax code has changed. This usually occurs when an employee’s non-taxable income (personal allowance) increases or decreases, e.g. When the person rents a taxable benefit such as a company car.

Who is the person who creates the pay-roll numbers?

Each company has the right to decide how they will create payroll numbers. The numbers may be created through the department of HR (or in smaller businesses the person who is in charge of payroll) or provided by an outsourcing company according to their system or created automatically using payroll software. There are some differences in the way different payroll programs process the payroll numbers, however they are all different, and certain software may not be able to generate the numbers.

When payroll numbers are generated when you create payroll numbers, it’s beneficial to ensure that the same person or department is responsible for the job, if it’s possible to minimize the risk of errors. The person in charge of the payroll is required to be able to access a complete list of both current and old pay numbers so that they can make sure there aren’t any duplicate payroll numbers created by accident.


The distinction between the PAYE reference and a payroll number

If your business is licensed for PAYE, then employees will be issued an ID number for the PAYE program by HMRC. This is totally distinct from a pay number, as it is related to how HMRC collects tax and national insurance contributions. The PAYE (pay when you make) reference number is the three-digit HMRC Office number which is followed by a unique number that is tied to your business. It could look like 123/AB12345. On a pay slip the number will show employees how much tax they paid while working for the company. For companies this PAYE reference is used to fill out the end-of-year PAYE Tax Returns.


Is it mandatory for employers to provide pay figures to HMRC?

Employers are not legally required to report pay stubs to HMRC. However, it is suggested that employers keep a log on their employee’s pay numbers in case they have to refer to them in the future.


Common payroll issue

There are a variety of common payroll issues that could arise. Incorrect entries, particularly when discovered too late, are difficult to correct and could result in payroll issues like an employee not receiving the correct amount. For instance, if an employee quits and is hired by the company then a new payroll ID has to be allocated – they can’t be linked to the old number. This is because a pay number is assigned to each job, not one person. If you want to alter the payroll number of an employee during their tenure and report it promptly and precisely in the payroll PAYE system. If not, employers may mistakenly create a duplicate payroll instead of simply changing the current one.


Does HMRC oblige employers to issue Payroll numbers?

The answer is no, HMRC does not require employers to assign the payroll numbers of their employees. But, it’s suggested to employers to assign them to ensure that they keep track of employee deductions and payments.



The article we’ve explained the meaning of payroll numbers and how they can be utilized for employers within the United Kingdom. We have also examined the advantages of assigning payroll numbers to employees, and have offered some examples of the use of payroll numbers. If you’re or are employed by a company in the UK It is highly recommended to assign numbers for payroll to your employees so as to track their pay and deductions better.

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