You must tell HM Revenue and Customs (HMRC) when you take on a new employee and be registered as an employer.
Before you pay your new starter follow these steps:
- Check you need to pay them through PAYE.
- Get employee information to work out their tax code – if you don’t have their P45, use HMRC’s ‘starter checklist’ (which replaced the P46).
- Find out if they need to repay a student loan.
- Use these details to set up your new employee in your payroll software.
- Register your employee with HMRC using a Full Payment Submission (FPS).