HM Revenue & Customs (HMRC)
Collects taxes and National Insurance and pays Child Benefit. You deal with it for Income Tax, Self Assessment, PAYE and your tax code.
Home » Business and self-employment » Register as an employer (PAYE)
Register as an employer (PAYE)
Before you pay staff, register with HMRC as an employer to get your PAYE reference. Limited companies must register even if the only person paid is a single director.
Official links
| Official source | Applies to |
|---|---|
| GOV.UK: register as an employer www.gov.uk/register-employer | Whole UK |
| GOV.UK: PAYE and payroll for employers www.gov.uk/paye-for-employers | Whole UK |
Who handles it
Step by step
- Check if you need to operate PAYE for the people you will pay.
- Register online with HMRC before your first payday, but no more than 2 months before you start paying people.
- Wait for the letter with your employer PAYE reference number.
- Decide how to run payroll: with payroll software yourself, or through a payroll provider.
- Report pay and deductions to HMRC on or before each payday, and pay HMRC what you owe, usually every month.
What you need
- Your business details (company registration number if you are a limited company)
- The details of each employee you need for payroll records
- Payroll software or a payroll provider
Common mistakes
- Registering more than 2 months before you start paying people: you cannot.
- Thinking a company with only one director does not need to register.
- Assuming your payroll provider is responsible: as the employer you are legally responsible for all PAYE tasks.