Introduction

When you become an employer you have certain obligations regarding your employees’ tax and National Insurance contributions.

This guide outlines the initial processes you will need to go through, gives you all the information you need to find the necessary forms and introduces you to the New Employer’s Starter Pack.

This guide also explains who, for tax purposes, counts as an employee, and gives some basic guidance on operating a payroll system.

Subjects covered in this guide

• Introduction
• Who counts as an “employee”?
• First steps in taking on a new employee
• The New Employer’s Starter Pack
• Dealing with a new employee’s P45
• What if my new employee doesn’t have a P45?
• When a new employee doesn’t have or know their NI number
• Choosing a payroll system
• Operating the payroll manually
• Using payroll software
• Arranging payment for your new employee
• Paying your employee for the first time