Are You A New Employer?

08 Sep 2025

Taking on your first employee is an important milestone, but it also brings a series of responsibilities that must be managed carefully. Meeting these obligations from day one will help you avoid penalties and build trust with your new staff.

REGISTERING AS AN EMPLOYER
Before paying wages you need to register with HMRC so you can operate PAYE. This system ensures Income Tax and National Insurance are deducted correctly. Registration should be done before your first payday to avoid delays.

RIGHT TO WORK CHECKS
You must confirm that your employee is legally entitled to work in the UK. This involves checking documents such as a passport or using the official online service. Failure to conduct proper checks can lead to fines.

PAYROLL SYSTEMS
A payroll system must be in place to calculate pay, apply tax and National Insurance, and report to HMRC. You can use payroll software or ask your accountant to manage this for you. Accuracy is vital, as errors may create problems for both you and your employee.

CONTRACTS AND POLICIES
Every employee is entitled to a written statement of their employment terms. Clear contracts and workplace policies set expectations and provide protection for both sides.

PENSION DUTIES
Employers are required to assess staff for automatic enrolment into a workplace pension. Even if your first employee does not qualify, you will still have reporting duties.

RECORDS AND SAFETY
Keep accurate records of pay, tax, National Insurance and pensions. You also have a duty to provide a safe workplace, which may include conducting risk assessments.

By following these steps, you will ensure compliance and show that you are a responsible employer.

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