Registering for PAYE with HMRC
If your company is going to pay employees or directors a salary, you will need to register for PAYE (Pay As You Earn) with HMRC. Here's what PAYE is, when you need to register, and how we can help.
What is PAYE?
PAYE is HMRC's system for collecting Income Tax and National Insurance contributions from employees' wages. As an employer, it is your responsibility to deduct the correct amounts from salaries before they are paid, and to pass these to HMRC.
PAYE applies to directors who pay themselves a salary, as well as to any members of staff you employ.
When do I need to register?
You must register as an employer with HMRC before your company's first payday. You cannot register more than 2 months before you start paying employees.
You need to register for PAYE if any of the following apply:
• You are paying yourself or any employee a salary above the Lower Earnings Limit (currently £123 per week / £533 per month)
• You are providing employees with expenses or benefits (such as a company car or private medical insurance)
• You are employing anyone who has another job or receives a pension
💡 If you are the sole director and are not taking a salary — for example, if you are only drawing dividends — you may not need to register for PAYE. However, many directors pay themselves a small salary up to the tax-free threshold to make use of their National Insurance credits, in which case registration is required.
Our PAYE registration service
We can handle your PAYE registration on your behalf. There are two ways to access this service:
• Included in our All Inclusive package — PAYE registration is included as standard
• Purchase separately for £24.99 + VAT — available to buy from the Shop in your online account after company formation
👉 View our company formation packages
[Add link]
What happens after registration?
Once registered, HMRC will issue you with an Employer PAYE Reference Number and an Accounts Office Reference Number. You will need both of these to run payroll and make payments to HMRC.
⚠ Penalties apply for late or missing payroll submissions, so it is important to keep on top of your PAYE obligations once registered.
Further information
For more information on running payroll and your responsibilities as an employer, visit:
👉 https://www.gov.uk/paye-for-employers
PAYE is HMRC's system for collecting Income Tax and National Insurance contributions from employees' wages. As an employer, it is your responsibility to deduct the correct amounts from salaries before they are paid, and to pass these to HMRC.
PAYE applies to directors who pay themselves a salary, as well as to any members of staff you employ.
When do I need to register?
You must register as an employer with HMRC before your company's first payday. You cannot register more than 2 months before you start paying employees.
You need to register for PAYE if any of the following apply:
• You are paying yourself or any employee a salary above the Lower Earnings Limit (currently £123 per week / £533 per month)
• You are providing employees with expenses or benefits (such as a company car or private medical insurance)
• You are employing anyone who has another job or receives a pension
💡 If you are the sole director and are not taking a salary — for example, if you are only drawing dividends — you may not need to register for PAYE. However, many directors pay themselves a small salary up to the tax-free threshold to make use of their National Insurance credits, in which case registration is required.
Our PAYE registration service
We can handle your PAYE registration on your behalf. There are two ways to access this service:
• Included in our All Inclusive package — PAYE registration is included as standard
• Purchase separately for £24.99 + VAT — available to buy from the Shop in your online account after company formation
👉 View our company formation packages
[Add link]
What happens after registration?
Once registered, HMRC will issue you with an Employer PAYE Reference Number and an Accounts Office Reference Number. You will need both of these to run payroll and make payments to HMRC.
⚠ Penalties apply for late or missing payroll submissions, so it is important to keep on top of your PAYE obligations once registered.
Further information
For more information on running payroll and your responsibilities as an employer, visit:
👉 https://www.gov.uk/paye-for-employers