1. Overview

As a registered employer, you need to tell HM Revenue and Customs (HMRC) when you take on a new employee. Before you pay your new starter:

  1. Check you need to pay them through PAYE.

  2. Get employee information - usually from their P45 - to work out their tax code and starter declaration.

  3. Find out if they need to repay a student loan.

  4. Use these details to set up your new employee in your payroll software.

  5. Register your employee with HMRC using a Full Payment Submission (FPS).

Before you start

As well as telling HMRC, you need to do other things when you take on a new employee. Most are the same as when you start employing staff for the first time.