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What to do when employing staff for the first time

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ImageYour business has grown and you are now ready to take on staff!  This blog is aimed to take you through this process, to make it less daunting. 

There are 5 initial steps to follow when you are going to employ staff for the first time: 

  1. Decide how much you are going to pay your employee and how regularly.  This should be on/above the national minimum wage (£6.50 0ver 21s, £5.13 18-21s, £3.79 under 18s, £2.73 apprentice aged 16 to 18 and those aged 19 or over who are in their first year. All other apprentices are entitled to the national minimum wage for their age). 

  1. Carry out employment checks.  This includes checking your employee has the right to work in the UK. 

  1. Get employer’s liability insurance. 

  1. Give your employee a written statement of employment if they will be emploayed for more than 1 month. 

  1. Register as an employee with HMRC.  This can be done up to 4 weeks before you start employing staff.   

 Once you have done thiswhat do you have to do to be able to pay your employee?  Here are the 8 things you will have to do to run your employee’s payroll: 

 ImageChose a payroll software system, or, bureau.  Remember, as an employer, you are legally responsible for completing allPAYEtasks, even if you pay someone else to do them. 

  • Report your employee’s payments and deductions on/before each payday to HMRC as well any reductions.  Don’t worry, your payroll software will work out how much tax and National Insurance your company owes.   

  • Pay the HMRC each month, calculated from running your payroll.  (If you’re a small employer which expects to pay less than £1,500 a month, you can arrange to pay quarterly.)   

  • Inform the HMRC if their circumstances change e.g. reaches state pension age. 

  • Collect and keep records of your employee’s details. 

  • Complete annual reports, this starts on 6th April each year. 

  • Follow rules ondata protection. 

  • Establish when your company is eligible for auto-enrolment. 


Don’t forget, as an employer, you must collect and keep records of: 

Your records must show you’ve reported accurately, and you need to keep them for 3 years from the end of the tax year they relate to.HMRCmaycheck your recordsto make sure you’re paying the right amount of tax. 

For further advice on payroll processing and auto-enrolment, please feel free to contact me on [email protected]

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