Thinking about hiring your first employee or paying yourself as a director? That’s exciting stuff. But before you jump into payroll, you need to register as an employer with HMRC. It’s a legal requirement, and it’s easier than you might think.
In this post, we’ll walk you through how to register as an employer in the UK, what you’ll need, and what happens next. Perfect for small business owners, sole traders, and directors getting ready to take that next step.
Why You Need to Register as an Employer
You must register as an employer with HMRC if:
You’re hiring someone who earns more than £123 a week
You’re providing employee benefits or expenses
You’re running payroll, even if it’s just to pay yourself through PAYE as a director
Even if you’re the only person on the payroll (as in the case for many limited company directors), HMRC still counts you as an employer.
And yes, you need to register before the first payday. HMRC recommends doing it at least 2 weeks before you run your first payroll.
What You Need Before You Register
Before you dive into the form, make sure you’ve got the following:
Your business name and address
Your business start date
Your company’s Unique Taxpayer Reference (UTR)
Your Companies House registration number (for limited companies)
An idea of how many employees you’ll have
If you’re a sole trader, you’ll need your personal UTR and National Insurance number too.
How to Register as an Employer with HMRC
Let’s break it down into simple steps. You’ll be registering for PAYE (Pay As You Earn), which is the system HMRC uses to collect Income Tax and National Insurance from employees.
Step 1: Go to the HMRC Registration Page
Head over to the official HMRC employer registration page. This is where you’ll start your PAYE registration.
Step 2: Log In or Create an Account
If you already have a Government Gateway account, log in
If not, you’ll be prompted to create one during the process
You’ll then answer some questions about your business and whether you’re employing others or just paying yourself.
Step 3: Submit the Form
Once you’ve completed all the details, submit your registration. You’ll get confirmation right away, and your PAYE reference number will be posted to you. This usually arrives within 5 to 10 working days.
Keep this safe. You’ll need it every time you deal with HMRC about payroll.
What Happens After You Register
After registering, here’s what to expect:
You’ll get a PAYE reference number and Accounts Office reference
You can start setting up payroll using recognised software like Xero Payroll
You’ll need to report to HMRC every time you pay someone
You might also need to enrol employees in a workplace pension scheme
If you’re about to bring someone on board, make sure you don’t miss anything important. Check out our Payroll Checklist for Hiring Your First Employee, which covers all the essentials and helps keep things simple.
Tips to Make Life Easier
Getting registered is just the first step, so here are a few ways to stay on top of things:
Use payroll software like Xero or BrightPay that sends info to HMRC automatically
Keep good records of hours worked, pay, and contracts
Learn about statutory payments such as sick pay and parental leave
Make sure you pay HMRC on time. The deadline is usually the 22nd of the following month if you’re paying online
- For a step-by-step breakdown of what PAYE looks like in practice, check out our Quick Guide to PAYE for New Employers.
Final Thoughts
Registering as an employer might sound like admin overload, but it’s a key step to growing your business or simply paying yourself properly as a company director.
Just make sure you register before your first payday, get your PAYE references sorted, and use tools that keep payroll stress-free. If you’re using Xero, their payroll feature is a brilliant choice that links directly to HMRC.
Not sure where to start or need a hand getting set up?
Book a free call and let’s talk it through. Whether you’re hiring staff or just paying yourself, we’ll help you register the right way and keep things simple from day one.
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