When should you register for PAYE?

As a new business, there are a number of rules you must follow when you start to employ staff. When to register for PAYE is a question we often get asked.

HMRC advise that you should register for PAYE as an employer before the first payday and this process must also be completed by directors of a limited company who are employed by the company.

If none of your employees are paid more than £123 a week, don’t receive expenses or benefits and don’t have another job or get a pension, then there is no requirement to register as an employer. However, even if this was the case you would still need to keep payroll records.

Organising a payroll system and setting this up can be very daunting and that is why we at Cloud Bookkeeping Warwick are here to help. All employers can choose between a payroll provider or running their own payroll and we always advise choosing a suitable payroll software that can assist you.

When you set up payroll in order to pay your employees, you will also need to provide HMRC with information about tax and other deductions from employees’ pay. This can be 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.

Other things to remember are that you should check any new employees have the legal right to work in the UK and that as an employer you will be required to offer a workplace pension scheme.

If you would like further advice about payroll systems and how we can take that burden away from you, please get in touch.

*All the above information provided by HM Government – 10.05.22

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