Payroll number: what is it and where can I find it?

Paying yourself a salary or taking on your first member of staff is a huge milestone for your business. Congratulations!

Along with the excitement comes a whole new set of words to wrap your head around: payroll numbers, PAYE references, employee numbers. It can feel like a lot to take in but remember that every big business you admire started with these same steps.

Don’t worry, we’ve got you. This guide covers everything you need to know about what a payroll number is, why it matters and how to find your payroll number. 

So, whether you’re running payroll for yourself as a director or starting to build a team, let’s get rolling.

Key takeaways

• A payroll number is a unique code assigned to each employee in your payroll system
• It’s separate from your PAYE reference number, which identifies your business rather than the person
• You can usually find your payroll number on your payslip or P60
• Using payroll numbers isn’t a legal requirement, but it’s smart to use them

A payroll number is a unique reference code that your business assigns to each person on the payroll. 

Think of it like another form of internal identification. It’s your way of keeping track of each employee in your payroll records, separate from their name or job title.

Good to know: a payroll number is not the same as your PAYE reference number. Your PAYE reference is issued by HMRC when you register for payroll. It identifies your business as an employer. A payroll number, on the other hand, identifies individual employees within your own system. 

If you’re a director paying yourself a salary, you’ll have your own payroll number, just like any other employee on your books. It’s also worth noting that this is different from your National Insurance (NI) number. Your NI number stays with you for life, but your payroll number is specific to your current company.

Payroll numbers have one job: to keep things organised. This is especially important as your business grows. But when you’re a one–person operation, it might feel like just another bit of admin. However, the moment you start hiring employees, having a clear system makes life a lot easier when it comes to running payslips and sorting out any tax queries with HMRC. 

Payroll systems need to be incredibly robust (and secure) because they handle a huge amount of data. Based on early estimates from HMRC and the ONS, there are approximately 30.3 million payrolled employees in the UK as of February 2026. 

Payroll numbers play a big part in helping to keep all this data organised. As a small business owner or director, payroll numbers help you:

• Quickly identify employees in your records
• Avoid mix–ups if you have employees with similar names
• Keep your payroll software tidy and easy to search
• Sort out any queries or corrections down the line

Tip: if you’re a director and paying yourself through PAYE, having a payroll number means your records are consistent right from the start. This makes things simpler as you grow.

How you find your payroll number is simple: check your payslip. 

Your payroll number is usually listed alongside other key details like your tax code, National Insurance number, and pay period. If you have recently finished a tax year, you can also find it on your P60.

It’s typically labelled as payroll no., payroll ref, or something similar. But what it’s called can vary depending on what payroll software your employer (or you, if you run your own payroll) is using. If you have left a job recently, it will also be on your P45. 

If you’re a director paying yourself a salary, you should be generating payslips each time you process your pay (yep, even if it’s just you on the books). In this case, your employee’s payroll number will appear on those payslips, so make sure you’re keeping them somewhere easy to find.

If you’ve lost your payslips or simply can’t find them, there are a few ways to track down your payroll number:

• Check your payroll software: if you manage your own payroll, your number is in the employee records
• Ask your accountant or bookkeeper: if someone else handles your payroll, they’ll have it on file
• Look at old payslips or P60s: your payroll number is usually consistent, so any previous documents should show the same one
• Check your employment contract: some employers include it there, too

If you genuinely can’t find it and you’re an employee, your HR department or payroll contact should be able to help.

Many companies use payroll apps now to help employees keep track of their payslips. Usually, you can just log in and see your details on your main dashboard.

In the UK, there’s no legal requirement for a business to use payroll numbers. HMRC doesn’t ask for them, and your business won’t get into trouble for not having a formal payroll numbering system.

That said, they can be very useful. And for many businesses, they’re the secret to an efficient payroll system. Here’s a quick guide on when they’re worth using and when you might not need them:

Worth using if: 

• You have (or plan to have) more than one employee
• You want a more organised payroll system
• You’re using payroll software that supports them

Less essential if: 

• It’s just you as a sole director with no other staff
• You prefer to keep things simple

Our advice: even if you’re just starting out, it’s a good idea to use payroll numbers early. If you ever decide to bring on staff or work with an accountant, having a clear payroll system already in place will save you a lot of time. 

How you create payroll numbers is up to you — there’s no official guide or format to follow from HMRC.

The main thing is that each number is unique to each employee, and that you use them consistently. If you’re using HMRC’s Basic PAYE Tools, the software may even suggest or assign these for you automatically. Common formats include:

• Numbers in a row: e.g. 001, 002, 003 
• Initials plus a number: e.g. JD001 for someone called John Davies
• Department codes plus a number: e.g. FIN001 for someone in finance

If you’re the only director, your payroll number could be something like DIR001. It’s simple, clear, and easy to reference in your records. 

The most important thing is that you have a system, even a basic one, which we recommend to keep things manageable. That way, if your team grows or you start working with an accountant, everything’s already organised and ready to go.

Payroll numbers are a simple, practical tool that can save you a lot of time and unnecessary confusion as your business grows. 

If you’re just starting your payroll journey, the first step is making sure you’re set up with HMRC. To help, we created an easy guide on how to register for payroll. 

As a next step, you could consider opening a dedicated business current account to help with invoices, tax, reporting and accounting.  

And if you’re still working on the foundations of your business, our company name availability checker is a great place to start. When you’re ready to incorporate, our team are on hand to help you through the company registration process — your new business will be up and running within 24 hours. 

In the meantime, best of luck with your payroll. You’ve got this. 

Not always, but they can be. Some businesses use the terms interchangeably — in many payroll systems, each employee’s payroll number is their employee number. The difference is mainly about context: employee number is a general HR term, while payroll number is specifically used for your pay.

There’s no universal format, so it really depends on whoever set up your payroll system. You might see something like EMP001, 0042, or DIR01 — a mix of letters and numbers that’s unique to each employee. If you’re setting one up yourself, keep it short, consistent, and easy to reference. 

Generally, no. Payroll numbers are designed to stay the same throughout your employment or your time as a director. That consistency is what makes them useful — your records stay clean and easy to trace. The only time it might change is if your company moves to a brand new software system, but even then, most people try to keep the old numbers to avoid a muddle.