Setting up payroll for the first time
What it involves, what we need from you and what happens after registration
Before your company can pay anyone, it must be registered as an employer with HMRC. We handle this registration on your behalf as part of our Accounting Standard and Scale plans.
What PAYE registration involves
We register your company with HMRC's employer PAYE service. HMRC issues two references: an Employer PAYE Reference (for example 123/AB456) and an Accounts Office Reference (18 characters). Both are needed to submit payroll data and make PAYE payments to HMRC each month.
What we need from you
- The date you started or plan to start paying employees
- Full names and National Insurance numbers of directors and employees to be added
- Your Government Gateway company login credentials
After registration
Once registered, we set up your payroll in Xero Payroll, create employee records, configure tax codes from P45s or starter declarations, and run your first payroll. You should notify us at least three weeks before your intended first pay date.
💡 Good to know: PAYE registration must be completed before the first payroll is run. If you are on our Accounting Simple plan and want to start paying a salary, contact us to discuss upgrading to our Standard or Scale plan before your first pay date.
Not found what you're looking for?
Please get in touch and we'll be happy to help:
Email: You can submit a request using our contact form
Phone: 020 3897 2233
Live Chat: Select the live chat icon on the bottom right