1. Overview

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 don’t 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, eg checking they can work in the UK.