Get employee information
You need to get certain information from your employee so you can set them up with the correct tax code and starter declaration on your payroll software.
You’ll usually get most of this information from the employee’s P45, but they’ll have to fill in a ‘starter checklist’ (which replaced the P46 form) if they do not have a recent P45.
You’ll need your employee’s:
- date of birth
- full address
- start date
From your employee’s P45, you’ll need their:
- full name
- leaving date from their last job
- total pay and tax paid to date for the current tax year
- student loan deduction status
- National Insurance number
- existing tax code
You must keep this information in your payroll records for the current year and the 3 following tax years.
If your employee does not have a P45
Ask your employee for this information if you do not have their P45, or if they left their last job before 6 April 2017.
The P46 form is no longer used.
Get the information by asking your new employee to complete HMRC’s new starter checklist.
If your employee has more than one P45
You should use the P45 with the latest date and give the other one back to the employee.
If they have the same leaving date use the P45 with the highest tax free allowance (or least additional pay for a K code) and give the other one back to the employee.
Work out your employee’s tax code
When you’ve got your employee’s information you can use a tool to:
- work out their tax code and starter declaration
- find out what else to do before you pay your employee for the first time
Employees you only pay once and secondments from abroad
Step 1 Check your business is ready to employ staff
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.
As an employer you must make sure you recruit employees fairly.
and Check they have the legal right to work in the UK
and Find out if they need a DBS check
Step 3 Check if they need to be put into a workplace pension
You have ongoing responsibilities to check if your employees need to be put into a workplace pension scheme.
Step 4 Agree a contract and salary
When someone accepts a job offer they have a contract with you as their employer.
Step 5 Tell HMRC about your new employee
You must tell HMRC about your new employee on or before their first pay day.