How to register as an employer with HMRC
Written by Jonathan Pitt from Crystal HR & Payroll
If you got here by typing in how to register as an employer with HMRC you're in the right place.
Today, we’re going to look at how to register as an employer, or how to register for PAYE, (they're one and the same thing), when to register and how you do this.
Work out if you're an employer
While it might seem obvious, the first thing to do is work out if you are an employer. This might seem an obvious point, but it’s important to only register if you are an employer as there are a number of tasks you will be required to do as an employer, you don’t need to do if you if you don’t employ anyone.
Are you an employer?
To work out if you are an employer, look down the below list and decide if any of the following apply to you:
- You are a director of a limited company and paying a salary to yourself.
- You have an employee. Someone who works for you is likely to be an employee if most of the following apply:
- they’re required to work regularly unless they’re on leave, for example they’re on holiday or on sick leave or on maternity leave
- they’re required to do a minimum number of hours and expect to be paid for time worked
- a manager or supervisor is responsible for their workload, saying when a piece of work should be finished and how it should be done
- they cannot send someone else to do their work
- they get paid holiday
- they’re entitled to contractual or Statutory Sick Pay and to maternity pay or to paternity pay
- they can join the business’s pension scheme
- the business’s disciplinary and grievance procedures apply to them
- they work at the business’s premises or at an address specified by the business
- their contract sets out redundancy procedures
- the business provides the materials, tools and equipment for their work
- they only work for the business or if they do have another job, it’s completely different from their work for the business
- their contract, statement of terms and conditions or offer letter (which can be described as an ‘employment contract’) uses terms like ‘employer’ and ‘employee’
- you pay £123.00 or more each week to your employee
- you are providing additional benefits to employees such as a company car or expenses
- you are an employer in the construction industry and make payments to subcontractors.
- They receive benefits or expenses and are receiving pension.
Does most of the list apply to you?
If you can say yes to most of the points above, it's likely you're an employer, if you are still not sure, we can help.
Call us on 0345 564 5774 or send us an email to sales@crystalhrandpayroll.co.uk
Alternatively, call HMRC on 0300 200 3200 or you can use HMRC Chat Online,
Employers enquiries: chat – Ask HMRC – GOV.UK (tax.service.gov.uk) It’s always best to check if you’re unsure.
If you pay less than £123.00 per week, there is no need to register as an employer, but you do need to keep payroll records.
Self-employed and sole traders
It’s important to touch briefly on self-employment.
If you are self-employed or a sole trader paying only yourself and you don't employ another person (see if you have an employee above), then you can continue paying yourself without being classified or needing to register as an employer.
When to register with HMRC
Ideally, you’ll register up to 28 days prior to making your first wage or salary payment.
If you register sooner, you’ll need to file what is known as a nil return.
Basically, a nil return tells HMRC there are no employees. If you don’t file a nil return, you may get a penalty for late filing, so put the date in your diary for about 3 to 4 weeks before you intend to pay your employee.
What information do you need to register?
To register for PAYE, you’ll need to have all the following business details at hand to kick start the whole registration process. These include:
- Your business name and trading name and company number if you are a limited company
- Your registered business address
- All contact details for the business or person who will become the employer such as telephone number and email address
- Details of at least one of your company directors, to include their National Insurance Number, home address and telephone number
- The nature of your business activities if you are a business
- Your start date as an employer and anticipated first salary or wages pay date
- How many employees you intend to start off with
If you forget and have already paid your employee, don’t worry, you can register up to 28 days after you’ve paid your employee without a fine or penalty. If you register after this, you may get a fine or penalty.
Employer registration checklist
Are you an employer? If you’re not sure, have a look at the list above.
Do you have all the information you need to register to hand? This includes:
- Your business name and trading name and company number if you are a limited company
- Your registered business address
- All contact details such as telephone number and email address
- Details of at least one of your company directors, to include their National Insurance Number, home address and telephone number.
- The nature of your business activities
- Your business start date and anticipated first pay date
- How many employees you intend to start off with
Do you have the website address to register online? If not, here it is again, Register as an employer - GOV.UK (www.gov.uk)
Are you registering no more than 28 days before your first pay date?
Don’t forget, for help with this and anything payroll related, get in touch and we’ll be pleased to help.