There are many rules that new businesses must consider when they start employing staff for the first time. These include registering for PAYE as an employer with HMRC. This must be done before the first payday, and this also applies to limited company directors who are going to be paid by the company.
You do not need to register for PAYE if none of your employees are paid £123 or more a week, get expenses and benefits, have another job, or get a pension. However, you must keep payroll records.
HMRC also needs to be sent information about tax and other deductions from employees’ pay when the employee is paid. This is done using the Real Time Information (RTI) system which involves employers sending HMRC information each tax month. Tax months run from the 6th of one month to the 5th of the next.
You must also comply withthe minimum wage legislation,check that any new employees have the legal right to work in the UK and you will be required to offer a workplace pension scheme.
Setting up and maintaining the payroll can be complex, time consuming and prone to errors. We can help you in the first place with choosing a payroll software and training, or you can use our payroll bureau service and we will take care of all this for you.
More details from HMRC are available here:https://www.gov.uk/paye-for-employers
