Hiring your first employee

1. Register as an employer with HMRC and set up PAYE (up to 4 weeks before the first payday)
2. Employers’ liability insurance — legally required, minimum £5m cover
3. Right-to-work check — verify and keep evidence they can work in the UK
4. Written statement of particulars — the main terms, given on or before day one
5. Pension auto-enrolment — assess, enrol qualifying staff and contribute
6. Agree the salary and check the National Minimum/Living Wage applies correctly

Once someone’s on the payroll you must run payroll each pay period and send HMRC a Real-Time Information submission on or before each payday, then pay the PAYE and National Insurance across by the 22nd of the following month. With staff, your company may also be able to claim the Employment Allowance (up to £10,500 off employer NI) — unlike a single-director company.

Our payroll service →

You must automatically enrol qualifying staff (broadly aged 22 to State Pension age earning over £10,000) into a workplace pension and contribute — a minimum total of 8%, of which at least 3% is the employer’s. You also complete a declaration of compliance with The Pensions Regulator. Missing this carries penalties, so build it in before the first payday.

Salaries, employer NI and pension contributions are all deductible against Corporation Tax, so taking on staff reduces your tax bill as well as your cash. We’ll fold the payroll into your bookkeeping and year-end. Call 0114 327 1480.

Staff costs as allowable expenses →