You must tell HM Revenue and Customs (HMRC) when you take on a new employee and be registered as an employer.

Before you pay your new starter follow these steps.

  1. Check you need to pay them through PAYE.

  2. Get employee information to work out their tax code - if you do not have their P45, use HMRC’s ‘starter checklist’ (which replaced the P46).

  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).

You must also follow the same steps as when you start employing staff for the first time, for example checking they can work in the UK.

  1. Step 1 Check your business is ready to employ staff

  2. Step 2 Recruit someone

    You need to advertise the role and interview candidates. You can use a recruitment agency to do this or do it yourself.

    1. Find out about recruiting someone yourself on Acas
    2. Find out about using a recruitment agency

    As an employer you must make sure you recruit employees fairly.

    1. Avoid discrimination during recruitment
    2. Make your application process accessible for employees with disabilities or health conditions
  3. and Check they have the right to work in the UK

  4. and Find out if they need a DBS check

    You may need to check someone's criminal record, for example, if they'll be working in healthcare or with children.

    1. Find out if you need a DBS check
    2. How to do a DBS check
  5. Step 3 Check if they need to be put into a workplace pension

    Check if you need to put your employee into a workplace pension scheme:

  6. Step 4 Agree a contract and salary

  7. Step 5 Tell HMRC about your new employee