PAYE (Pay As You Earn) registration is the process through which employers in the United Kingdom register with HM Revenue and Customs (HMRC) to operate the PAYE system for their employees. The PAYE system is a method of deducting income tax and National Insurance contributions from employees’ wages or salaries before they are paid.
If you employ workers or plan to take a salary yourself, you’ll need to register for PAYE (Pay As You Earn). We can help you complete your PAYE Registration. Need help with PAYE Registration? Call us 0203 002 2027.
Registering as an Employer
To register for PAYE, employers need to complete an online registration process with HMRC. This typically involves providing information about the business, including its legal name, address, contact details, and start date of employment.
Employer PAYE Reference
During the registration process, employers receive an Employer PAYE Reference, also known as an Employer Reference Number (ERN). This unique reference number is used by HMRC to identify the employer’s payroll and tax records.
Reporting Employee Details
After registering for PAYE, employers must provide HMRC with information about their employees, including their names, addresses, dates of birth, and National Insurance numbers. This information is essential for the accurate calculation and deduction of taxes.
Deducting and Paying Taxes
Once registered for PAYE, employers are responsible for deducting income tax and National Insurance contributions from their employees’ wages or salaries. These deductions must be made in accordance with HMRC’s tax codes and rates. Employers are also required to pay the employer’s share of National Insurance contributions.
Compliance and Record-Keeping
Employers must comply with PAYE regulations and maintain accurate records of payroll and tax-related information, including payslips, payroll records, and records of taxes deducted and paid. These records should be retained for a specific period, usually six years.
Registering for PAYE is a crucial step for employers in the UK to fulfil their legal obligations and ensure proper deduction and payment of income tax and National Insurance contributions for their employees. Employers should seek professional advice if needed, and ensure they meet their ongoing reporting and payment obligations under the PAYE system.
Next step
If you would like to find out more about how we could help your business, please get in touch by either calling on 0203 002 2027, 07838 033385 or completing the contact form and we will be right back to you.