If you are starting to employ staff or engaging subcontractors for construction work, you will generally need to register as an employer with HMRC. This obligation extends even to individuals who are the sole director of their own limited company, in other words, you must register even if you are only employing yourself.
It is important that you register before your first payday to obtain your employer PAYE reference number, which is essential for operating PAYE correctly. You cannot register more than two months prior to the date you intend to start paying people.
Should circumstances require you to pay an employee before receiving your PAYE reference number, you should still run payroll, securely store your full payment submission and subsequently send a late full payment submission to HMRC.
For limited companies with one to nine directors, online registration is typically available. After completing your registration, you can check HMRC's guidance to understand when to expect your official letter confirming your employer status and providing your PAYE reference number. There is also an option to continue an application if you have already started the registration process.
To ensure compliance and avoid issues, register with HMRC before your first payday, or follow the specific late submission process if payment is unavoidable beforehand.
