PAYE and payroll for employers

3. Setting up payroll

If you decide to run payroll yourself, you need to complete certain tasks to pay your employees for the first time. You can choose when and how often to pay your employees.

  1. Register as an employer with HM Revenue and Customs (HMRC) and get a login for PAYE Online.

  2. Choose payroll software to record employee’s details, calculate pay and deductions, and report to HMRC.

  3. Collect and keep records.

  4. Tell HMRC about your employees.

  5. Record pay, make deductions and report to HMRC on or before the first payday.

  6. Pay HMRC the tax and National Insurance you owe.

You’ll also need to complete certain annual reports and tasks to prepare for the next tax year, which starts on 6 April.