Setting up a PAYE scheme E
Sarah Bradford, of Writetax Ltd, sets out the requirements for registering with HMRC as an employer and setting up a PAYE scheme
mployers have various responsibilities imposed upon them, including the responsibility for deducting income tax under pay as you earn (PAYE) and national insurance contributions (NICs) on behalf of HM Revenue & Customs (HMRC) and paying the amounts over to HMRC. A new employer will generally need to set up a PAYE scheme with HMRC, although it may not be necessary to do this immediately. There is no minimum number of employees for a PAYE scheme – a scheme may be needed if the employer is the sole employee.
When to register as an employer The need to register with HMRC as an employer arises as soon as the first employee is taken on who: l is paid at or above the PAYE threshold (£182 per week for 2013/14) l is paid at or above the lower earnings limit for national insurance purposes (£109 per week for 2013/14) l has another job l is receiving a state, company or occupational pension, or l is provided with employee benefits. It is important to get the registration
up and running in a timely fashion to enable the reporting requirements under real time information (RTI) to be met. Sufficient time must be allowed to activate the PAYE Online service as it may take up to a week for the activation code to arrive.
It is also important that a payroll system is up and running before the first payment is made to an employee to enable the reporting requirements imposed by RTI to be met.
Information needed In order to register as an employer and to set up a PAYE scheme, it is necessary to provide certain information. Some information is common to all employers, and this includes: l name (business name, partner’s name or company name as appropriate) l address – business or home address, including a postcode l telephone number – business or home number l contact email address l contact telephone number l name and address for correspondence l the date of the first payday or, if earlier, the date on which expenses were paid or
...NO MINIMUM NUMBER OF EMPLOYEES FOR A PAYE SCHEME...
24 PayrollProfessional
benefits provided to an employee. Further information is required which varies depending on the nature of the business which is registering as an employer. This information is set out in a table which is published on the HMRC website at
www.hmrc.gov.uk/payerti/ getting-started/
register.htm#3.
Registration process There are various ways in which an employer can register as such with HMRC. Most employers can register using HMRC’s online tax registration service. Employers wishing to register in this way should visit the home page of the HMRC website (
www.hmrc.gov.uk) and select `register’ from the `Do it online’ box in the top left-hand corner of the home page. It is then simply a case of selecting the link to `Tell HMRC you’re a new business, new employer or contractor or new to VAT’, followed by the link to `register for HMRC taxes’. Thereafter, it is simply a matter of working through the relevant questions. It should be noted that a separate Government Gateway account is needed for each PAYE scheme that is to be registered with HMRC. This is so that HMRC can automatically enrol the PAYE scheme for PAYE online once the registration application has been processed.
Some employers need to register using email rather than the online registration
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