If you’ve recently started a new job or changed your bank account, providing accurate bank details to your employer is essential for timely salary payments.
Most employers use direct deposit systems, which transfer your earnings straight into your bank account. This method is quick, secure, and avoids unnecessary delays.
However, to make this process seamless, the payroll team must have all the correct information on file. Inaccuracies in your bank details can lead to failed transactions and payment issues, making it vital to double-check the information you submit.
In this blog, we’ll walk you through what bank details employers need, why they need them, and how you can ensure your pay arrives smoothly.
Why Do Employers Need Your Bank Details?
When you’re employed, your salary is typically paid via a direct deposit into your bank account. For this system to work efficiently, employers need specific banking information.
This is part of the payroll setup process, which is vital to ensure correct and timely payments. Here’s why your bank details are necessary:
- Payment Processing: Employers need your account and sort code to process salary payments.
- Payroll Setup: Your name on the bank account must match the name on your employment records to avoid identity mismatches.
- Compliance: Employers must ensure they follow UK employment and tax laws by accurately reporting income through HMRC.
- Audit Trail: A clear record of payment ensures accountability and helps in resolving any payroll disputes.
Payroll systems rely on automated transfers. If your details are missing or incorrect, payments may be delayed, or worse, sent to the wrong account.
Providing your full name as it appears on your bank account also ensures payments are not rejected by the receiving bank. Employers require these details early on to schedule you into the regular pay cycle.
What Bank Details Do Employers Need?
For salary payments in the UK, your employer requires several specific pieces of banking information to ensure the successful and secure deposit of wages. Each of these details plays a unique role in helping employers validate and process your payments accurately.
Here’s what they typically ask for:
- Your full name as registered on your bank account
- Your account number
- Your sort code
- Your bank’s name and address (sometimes)
- Type of account (checking or savings)
- IBAN and SWIFT/BIC (if receiving international payments)
Providing these details upfront can help avoid payment disruptions or verification issues.
| Required Detail | Purpose |
| Full Name | Must match the name on the account for bank verification |
| Account Number | Identifies your specific bank account |
| Sort Code | Identifies the branch of your bank |
| Bank Name and Address | Optional but helps confirm authenticity |
| Type of Account | Indicates whether it’s a personal, joint, or savings account |
| IBAN / SWIFT (if international) | Required for cross-border payments and international employees |
Giving these details early in your employment journey helps ensure you get paid correctly and on time.
When Do Employers Ask for Bank Details?
Employers usually ask for your bank details as part of the onboarding process. This typically occurs right after you’ve accepted a job offer and completed your initial paperwork.
At this stage, you may be required to fill in a starter form or provide your details directly to the payroll department. If your employer uses a self-service HR system, you might be asked to upload these details securely through an online portal.
Getting this information early allows the payroll team to process your salary in time for your first pay date. If your details are submitted late, your payment might be delayed, causing unnecessary inconvenience. Therefore, it’s best to share your information as soon as your job officially begins.
Is It Safe to Share Your Bank Details with Your Employer?
Yes, sharing your bank details with your employer is generally safe, provided it’s done through secure channels. Reputable companies have strict data protection policies in place, often compliant with GDPR regulations, to ensure your personal and financial information is safeguarded.
Avoid sharing sensitive information through unsecured methods like handwritten notes or unencrypted emails. Instead, submit your details via a company-approved HR portal or through a secure digital form.
Always verify that you’re dealing with an official representative of the company before providing such data. Employers are responsible for storing this information securely and are legally bound not to misuse or disclose it.
What If You Give the Wrong Bank Details to Your Employer?
Providing incorrect bank details can cause payment failures, delays, and sometimes result in your salary being sent to the wrong account. This can be stressful and time-consuming to resolve.
What Happens If You Submit Incorrect Details?
- The payment might be rejected and returned to the employer.
- Funds may be delayed for several days while the error is corrected.
- If the wrong account exists and accepts the money, retrieving it can involve a lengthy bank investigation.
Steps to Do If You’ve Entered Incorrect Bank Details
- Notify your HR or payroll department immediately.
- Submit the correct details as soon as possible.
- Confirm the change has been updated before your next pay date.
- Monitor your bank account and payslip closely during the transition.
Acting swiftly not only helps resolve payment issues faster but also protects your financial stability. Always double-check your bank details to avoid future complications.
Can You Use a Joint or Secondary Bank Account for Payroll?
Yes, you can generally use a joint or secondary bank account to receive your salary, provided your name is listed as an account holder.
Employers do not usually require the account to be solely in your name, but the name you submit must match one of the names registered on the bank account.
This helps prevent identity verification errors during the payment process. It’s important to check with your employer or payroll provider if there are any restrictions.
Some employers prefer that the bank account be personally held by the employee for clarity and auditing reasons. In most cases, joint accounts are accepted as long as accurate information is provided.
What Other Information Do Employers Need Besides Bank Details?
When starting a new job, providing your bank details is just one part of the onboarding process. Employers need several other key pieces of information to set up your payroll and tax records accurately.
Personal and Contact Information
Employers typically need your full legal name, home address, date of birth, and National Insurance Number. This data ensures that you’re identified correctly in payroll and tax systems.
Job and Salary Information
Details about your job start date, agreed salary or hourly rate, and standard working hours are necessary to calculate your pay correctly. These are also used to determine pension eligibility and holiday accruals.
Tax and Pension Data
If you do not have a P45 from a previous employer, you may need to complete a starter declaration. Employers use this to determine your initial tax code.
Pension contribution percentages and any postponement periods are also required for compliance with auto-enrolment rules.
Contact Details for Payroll Access
An up-to-date email address is often needed to send digital payslips or for accessing payroll systems. Accurate and complete records help employers meet their legal obligations and ensure you’re paid correctly.
How Do Employers Submit Bank Details to HMRC for PAYE?
Employers do not submit your bank details directly to HMRC. Instead, they use your financial and personal information to manage PAYE (Pay As You Earn) records through payroll software.
HMRC receives data about your earnings, deductions, and tax code, but not your account number or sort code.
What Employer’s Report to HMRC Includes?
- Gross pay and deductions
- National Insurance contributions
- Income tax details
- Tax code and period of employment
Employers Must
- Submit Real Time Information (RTI) to HMRC every pay cycle
- Keep detailed payroll records for at least three years
- Ensure the data sent is accurate and matches employee records
Although bank details are not transmitted to HMRC, keeping accurate payroll records is essential for auditing and compliance.
Conclusion
Getting paid on time starts with giving your employer the right bank details. A minor mistake in a sort code or account number can delay your salary and create unnecessary stress. Always double-check your details and submit them securely through the correct channels.
Make sure your full name matches the name on your account, and confirm that your employer has updated their system if you make any changes.
When in doubt, reach out to your HR or payroll department in advance to avoid last-minute issues. Being proactive with your financial information ensures you get paid accurately and on time.
FAQs About What Bank Details Do Employers Need
What happens if my name doesn’t match the name on the bank account?
Your payment might be rejected or delayed if the names do not match. Always ensure the account holder’s name is entered exactly as it appears on your bank records.
Can my employer pay me into a foreign bank account?
Generally, UK employers pay into UK accounts. Some may support international payments, but this often involves additional verification and charges.
How long does it take for payroll changes to reflect in my salary?
Most updates, such as bank detail changes, take effect within one or two payroll cycles. It’s best to confirm changes several days before payday.
Are bank details stored securely in payroll systems?
Yes, legitimate payroll systems use encryption and secure storage protocols to protect your personal and banking information.
What if I don’t have a bank account yet, can I still get paid?
You may need to set up a bank account to receive direct deposit. Some employers may offer alternatives like prepaid payroll cards temporarily.
Do self-employed contractors need to share the same bank details?
Yes, contractors must provide bank details for payments, but they also need to issue invoices and manage their own tax liabilities.
Are employers allowed to ask for proof of bank ownership?
Some employers may request a bank statement or voided cheque to verify account ownership, especially for large or international payments.
