PAYE Registration
Before you can legally pay an employee through payroll, you must register as an employer with HMRC and set up a PAYE scheme. It is a step many new employers overlook until the first pay run is already due, which can lead to rushed registrations and late reporting. Our London accountants handle your PAYE registration properly, so you are fully compliant before your first employee starts.
What PAYE registration involves
PAYE (Pay As You Earn) is the system through which employers deduct Income Tax and National Insurance from their employees’ pay and send it to HMRC. Registering as an employer creates your PAYE scheme and gives you an Employer Reference Number (ERN), which you need to run payroll, submit RTI reports and issue P60s.
You must register before the first payday — and HMRC recommends allowing up to four weeks for the registration to be processed, though it is often quicker. Registering too late means you cannot report your first pay run on time, which triggers penalties.
How we set up your PAYE scheme
We register your business as an employer with HMRC, obtain your Employer Reference Number and Accounts Office reference, and configure your payroll software ready for your first pay run. We also process new starter checklists so every employee is set up with the correct tax code from day one.
Once your scheme is live, we can continue to run your payroll under it — or, if you prefer to run payroll yourself, we hand over a fully configured system with clear guidance on your ongoing obligations.
When you need to register
You must register for PAYE if you employ anyone earning above the Lower Earnings Limit, or if you employ someone who already has another job or receives a pension. We confirm whether registration applies to your situation and handle it at the right time — not too early, and never too late.
Frequently Asked Questions
When do I need to register for PAYE?
You must register before your first employee’s payday. HMRC recommends allowing up to four weeks, so we start the process as soon as you know you will be hiring.
What is an Employer Reference Number?
Your ERN is the unique reference HMRC issues when you register as an employer. You need it to run payroll, submit RTI reports and file P60s and P11Ds.
Do I need PAYE for a single employee?
You usually need to register if your employee earns above the Lower Earnings Limit, or has another job or a pension. We confirm exactly what applies to you.
Can you run payroll after registering me?
Yes. Once your PAYE scheme is live we can run your payroll ongoing, or hand over a configured system if you prefer to manage it yourself.