How to Register as an Employer with HMRC

You normally need to register as an employer with HM Revenue and Customs (HMRC) when you start employing staff, or using subcontractors for construction work.

You must register even if you’re only employing yourself, for example as the only director of a limited company.

You must register before the first payday. It usually takes up to 5 days to get your employer PAYE reference number. You can’t register more than 2 months before you start paying people.

If your business starts employing people on or after 6 April, you’ll get your employer PAYE reference number by 17 May.

To pay an employee before you get your employer PAYE reference number, you should:

  1. Run payroll
  2. Store your full payment submission
  3. Send a late full payment submission to HMRC

More information and help can be found here

Closing your PAYE Scheme

You need to tell HM Revenue and Customs (HMRC) straight away if you stop employing people.

Closing your PAYE scheme

You need to submit a final payroll return – either a Full Payment Submission (FPS) or Employer Payment Summary (EPS). You should:

  • deduct and pay any outstanding tax and National Insurance to HMRCwithin 17 days (or 14 if you’re paying by cheque)
  • select the ‘Final submission because scheme ceased’ box
  • put the date you closed your PAYE scheme in the ‘Date scheme ceased’ box – you can’t put a date in the future

You also need to:

  • send your expenses and benefits returns
  • enter a leaving date on each employee’s payroll record
  • give your employees a P45 on their last day – most payroll software can produce a P45 for you or you can order them from HMRC

If you start employing anyone in the same or next tax year, you should reopen your PAYE scheme by sending an FPS with your PAYEreference.

If you temporarily stop employing staff

Your PAYE scheme continues to run if you stop employing staff for less than a whole tax year (eg if you run a seasonal business). You don’t need to give your employees a P45 if you keep them on your payroll.

More details can be found here

PAYE Forms: P45

The P45 is a certificate which contains earnings and tax payments over the financial tax year up until when an employee leaves a job, and it is issued to employees by the employer. Form P45 shows how much tax has been paid on their salary for the current tax year.

You must give all employees a P45 when they stop working for you. You can either:

You can’t download blank P45 forms

Lost P45

You can’t get a replacement P45.  Instead, you can use a ‘Starter Checklist’ (link below) or ask your employee for the relevant details about their finances to send to HM Revenue and Customs (HMRC)

Use this form if you’re an employer and need to record information about a new employee for PAYE

Payroll – End of Year Tasks

As an employer running payroll, you need to:

  • report to HM Revenue and Customs (HMRC) on the previous tax year (which ends on 5 April 2017) and give your employees a P60
  • prepare for the new tax year, which starts on 6 April 2017
What you need to do   When
Send your final payroll report of the year   On or before your employees’ payday
Update employee payroll records   From 6 April
Update payroll software   From 6 April
Give your employees a P60   By 31 May
Report employee expenses and benefits   By 6 July

More details can be found here

Payroll End of Year Tasks

PayrollAs the financial year comes to an end on 5th April 2016, it’s time to look at the tasks that employers running a payroll need to complete for Her Majesty’s Revenue and Customs (HMRC).  You need to report to HMRC on the previous tax year (which ends on 5 April), give your employees a P60 and prepare for the new tax year, which starts on 6 April 2016

HERE ARE THE 5 ESSENTIAL TASKS AND TIMESCALE:

What you need to do When
Send your final payroll report of the year On or before your employees’ payday
Update employee payroll records From 6 April
Update payroll software From 6 April
Give your employees a P60 By 31 May
Report employee expenses and benefits By 6 July

For more information detailed click here