How do I set up XML bank file downloads for Payroll in the United Kingdom?

This article explains how to set up and download XML bank files so you can pay your team through your own bank. It is written for customers using Remote Payroll in the United Kingdom.

This is a one-time setup, and both you and Remote have a role in it, so read through the full process before you start.

Bank file downloads are part of the salary payment delivery add-on for Remote Payroll, and an additional fee applies. If you do not see the option in your account, contact your Remote account team to confirm whether the add-on is active for you.

Overview

1. What are bank files?
2. How the setup works
3. Before you start
4. How to set up bank file downloads
5. How to run and validate the test payment
6. How to report the test result
7. When is the setup complete?
8. Where to find your bank files
9. Frequently asked questions

What are bank files?

Bank files let you pay your team members directly by uploading a payment file to your bank.

Remote supports both standard bank files and XML bank files. The customer-led setup described in this article applies to XML bank files. Remote's internal teams can advise on the setup for other bank file formats.

How the setup works

The setup has two parts:

1. Remote setup: Remote configures the payment method and the bank file format for your legal entity during your payroll implementation.
2. Your validation: You add the bank details that salary payments are debited from, generate a test file, validate it with your bank, and report the result in the platform.

You can only complete your part of the setup after Remote confirms that the configuration on our side is done.

Before you start

Make sure you have:

• The bank files add-on active on your Remote Payroll plan.
• Confirmation from Remote that the payment method and bank file format are configured for your United Kingdom legal entity.
• The details of the bank account that salary payments are debited from.
• Deposit details saved for the team members you want to include in the test. Employees without valid deposit details do not appear in the selection list.
• View permissions for Payroll and Payroll Documents on your Remote account. If you do not have them, ask an admin in your company to update your access.

How to set up bank file downloads

Before bank file downloads are enabled, you need to validate the file format with a small test payment, also called a penny test.

1. Go to Legal entities and open the United Kingdom entity you want to set up.
2. In the legal entity profile, select Payment settings.
3. Select Download bank files.
4. Select your bank, then enter the requested banking information, including the account that salary payments are debited from.
5. Select the employees to include in the test.

If your bank is not listed, select Other. Remote then provides a standard ISO 20022 XML file. If your bank does not accept that file, let Remote know so we can advise on next steps.

How to run and validate the test payment

1. Select the date for the test payment.
2. Generate the bank file. The file debits 0.01 GBP for each selected employee on the date you choose.
3. Download the file from Remote and upload it to your bank.
4. Validate the file in your bank's testing environment, and in your bank's production environment where your bank requires this.
5. Confirm in the Remote platform whether the upload was successful.

How to report the test result

• If the test passes: Submit the successful result in the platform so Remote can review it and complete the setup.
• If the test fails: Submit the failed result and attach your bank's error file, or include the descriptive error text your bank provided.

Complete error details help the Remote team diagnose the issue and resolve it faster. Remote reviews the submitted result and follows up with you on the next steps.

When is the setup complete?

Bank file setup is complete when:

• The payment method for your legal entity is set to bank files.
• The bank file format you requested is configured.
• You have submitted a successful test result.

Where to find your bank files

Once your test is successful, payment files are available in the Payroll run tab for each payroll cycle. You no longer need to email Remote to request a file.

If your banking details change, for example your account number, bank, or branch, complete the setup and run a new test again so your file stays correctly configured.

Frequently asked questions

How do I know whether my bank file works with my bank?

You complete a verification test before using bank files for payroll payments. Download the test file from Remote, upload it to your bank, and confirm that the test transactions are processed successfully.

Which employees can I select for the verification test?

Only employees with valid deposit details saved in Remote are available for selection. If an employee is missing from the list, ask them to update the deposit details on their profile.

Why can I not see the Download bank files option?

Salary payment delivery is available as a Remote Payroll add-on. If you need help accessing an add-on you already purchased, or you are interested in buying it, contact your Remote account team or reach out through live messaging.

My bank file stopped working. What should I do?

First, check whether any banking details changed recently, such as your account number or branch name, because these details are built into the file. If something changed, update your Payment settings and run the test again. If nothing changed on your side, your bank may have updated its file requirements. Check with your bank, or send Remote the error details through live messaging so we can review it with you.

See also

• What are the employee salary payment delivery services for Remote Payroll customers?, which explains the add-on that includes bank file downloads.
• Get started with Remote Payment Services (RPS), which covers the direct payment services Remote supports in the United Kingdom, the European Union, and Canada.