How to register as an employer

If you employ someone – even if it’s only yourself, as a director – you’ll usually need to register as an employer with HM Revenue & Customs (HMRC). Most new employers can register online, but a small number will need to register by email, by telephone, or with an HMRC office.

This guide explains who needs to register as an employer, what information you’ll need with you when you register, and how to register. It also explains who will need to register by email, telephone or with an office.

Important updates and changes

Although the processes described here will not change once employers start sending PAYE information in real time, this might be a good time for you to familiarise yourself with other changes so that you are ready to operate PAYE in real time.

Getting started with PAYE in real time on the GOV.uk website

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When you need to register

As soon as you first employ someone, you will need to register as an employer with HM Revenue & Customs if one or more of the following is true:

• you’re paying them at or above the PAYE threshold
• the employee already has another job
• they are receiving a state, company or private pension
• you’re paying them at or above the National Insurance Lower Earnings Limit
• you’re providing them with employee benefits

If you need to register you can do so up to four weeks in advance of the first pay day.

Bear in mind that you might need to register as an employer even if you’re the only person working in your business. If you run a one-person limited company, you’ll be both an employer and an employee. So if any of the conditions above apply to you as an employee you’ll need to register.

Expenses and benefits: the basics

Rates and thresholds for employers

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Information you’ll need to register

To register as an employer you will need to have the following information to hand. Items marked with an asterisk are necessary and you will not be able to register without providing that information.

Information required from all employers

Please provide:

• name, business name, partner’s name, company name (as appropriate) *
• business or home address, including postcode (as appropriate)*
• business or home telephone number
• a contact email address *
• a contact telephone number *
• a name and address to send correspondence to
• the date of your first payday or, if earlier, the first date you made payments of expenses and/or provided benefits to your employees *

Additional information required in specific circumstances

If you are not a partnership or a limited company, you should also provide:

• your unique taxpayer reference number where appropriate
• your National Insurance number *
• trading name (if appropriate)
• the type of business you run *
• the number of employees you employ or expect to employ
• confirmation of whether you will be engaging any subcontractors in the construction industry
• confirmation of whether you will be acting as a Troncmaster
• confirmation of whether you are operating an Company Pension Scheme
• confirmation of whether you will be employing staff who are undertaking electoral duties
• confirmation of whether you will be employing staff to take on occasional educational examination duties

Partnerships

If your business is structured as a partnership, please also provide:

• the partnership unique taxpayer reference
• the trading name (if appropriate)
• the nature of the business being registered *
• confirmation of your Limited Liability Partnership (LLP) number, where appropriate
• the number of employees you employ or expect to employ in this tax year
• confirmation of whether you will be engaging any subcontractors in the construction industry
• the name of each business partner *
• the National Insurance number of each business partner *

Limited companies

If your business is a limited company, please also provide:

• the company unique taxpayer reference
• the trading name (if appropriate)
• the company registration number
• the address of its registered office
• the business telephone number
• the nature of the business being registered *
• confirmation of whether you are operating an Company Pension Scheme
• the number of employees you employ or expect to employ in this tax year (including paid directors)
• confirmation of whether you will be engaging any subcontractors in the construction industry
• the names of all company directors
• the National Insurance numbers of all company directors *

Find information on applying for a National Insurance number on the GOV.uk website

Choosing a payroll system

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How to register

Most employers can register online using HM Revenue & Customs’ (HMRC’s) online tax registration service using the link below. This will give HMRC all the information they need to register you as an employer and enrol you for the PAYE Online service in a single visit.

If you want to have the same User ID and password to register as an employer and you have previously registered for Self Assessment from the group headed ‘Individual’, you will need to ‘de-enrol’ and then ‘re-enrol’ by choosing Self Assessment from the group of services under the heading ‘Organisations’. You can do this by following the step by step process within the online tax registration service. Helptext is available should you need it, as you work through the registration process.

There are some exceptions for employers in certain unusual circumstances who must register in another way – check you don’t fall into one of the more unusual situations listed in the following sections – employers who need to register by email or telephone or through an HMRC office.

Register as an employer using the GOV.uk website

Employers who need to register by email

If you are one of the employers listed below, you can still register online, but you’ll need to use a form on the HMRC website that sends your information securely by email to HMRC:

• Limited Liability Partnerships (LLPs) with ten or fewer partners
• clubs which include charities and committee-run organisations (excluding limited companies)

Register as a new employer with HMRC by post or phone

Employers who need to register by telephone

If you are one of these employers, you’ll need to register by telephone by calling the HMRC New Employer Helpline:

• a limited company with more than nine directors
• a partnership and LLPs with more than ten partners
• an individual employing someone to work in their home (for example, a carer, nanny, gardener etc)

Find contact details for employers on HMRC’s contact list

Employers who’ll need to register through an HMRC office

Certain employers cannot register using the standard telephone or website methods. This is because their payroll affairs require special attention from HMRC. If you are in one of the following categories:

• receivers paying employees of companies in receivership
• most offshore employers – however EEA or Isle of Man employers who are liable for UK National Insurance contributions (NICs) can register by telephone or email
• employees who deduct their own tax and/or NICs (this includes registrars, certain employees of foreign embassies and consulates, and Roman Catholic priests)
• profit sharing schemes – trustees of profit sharing schemes must operate PAYE when they make a payment on behalf of an employer to a recipient that isn’t either an employee of the employer or receiving a pension from them
• businesses responsible for paying sick pay to the employees of more than one employer (for example, insurance companies)

You will need to register by writing to:

Customer Operations Employer Office
BP4009 Chillingham House
Benton Park View
Newcastle Upon Tyne
NE98 1ZZ

Alternatively, you can contact the Employer Helpline and they will take your name and telephone number and arrange for Employer Office to get in touch with you.

Find contact details for employers on HMRC’s contact list

Providers of incentive awards who use Taxed Award Schemes to pay the basic rate tax due on non-cash awards – if this applies to you contact the HMRC Incentive Award Unit on Tel 0161 261 3269.

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Your next steps after registering

Once you’ve registered as a new employer with HM Revenue & Customs (HMRC), you’ll receive a letter by post containing your Employer PAYE reference and Accounts Office reference numbers. The letter includes the web address for the ‘New Employer – getting started’ guide on the HMRC website. The letter will be headed – ‘Keep this letter safe – it includes your new employer registration and reference numbers’.

Everything you need to get started can be accessed from that guide. You don’t have to wait for your PAYE reference letter you can get ready to operate PAYE now, there’s a link at the end of this section.

If you register using the online tax registration service, you’ll also be automatically enrolled for PAYE Online for employers, although you’ll still have to activate it. HMRC will send you an Activation Code (also known as an Activation Pin) and this may take up to ten days.

But if you registered using another method, such as the online email form, you’ll next need to enrol for the PAYE Online for employers separately and you need to wait for your PAYE reference number before you can register for PAYE Online. This is explained in the next section. You will then still need to activate the PAYE Online service.

Activating the PAYE Online for employers service

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How to enrol for PAYE Online if you’re not able to use the online tax registration service

You must report certain payroll information online to HM Revenue & Customs (HMRC) before you can pay anyone, and you have to be enrolled with PAYE Online before you can do that, so you should enrol as soon as you can. If you registered online as an employer with the tax registration service, you’ll have been automatically enrolled for the PAYE Online service too, but you still need to activate the service – see below.

You can enrol for the PAYE Online service as soon as you’ve received both of these:

• employer PAYE reference number
• Accounts Office reference

Both of these reference numbers can be found on the letter HMRC sent to you when you registered as an employer.

Give yourself at least a week

Enrolling for the PAYE Online service only is quick and easy over the internet. But before you can use the service, you’ll need an Activation Code that will be sent to you by post from the Government Gateway. This will usually arrive within ten days of your registration.

How the registration process works

The following are the main stages in the registration process:

1. go to the online services homepage and click on the ‘Register’ button
2. click on ‘Organisation’, and select ‘PAYE for Employers’ on the next page
3. read and accept the terms and conditions of HMRC’s Online Services
4. enter your name and email address
5. create a password, making sure to keep it as you’ll need it to use the service
6. you’ll be given a User ID – write it down or take a screen print as you’ll need it to use the service
7. enter your Employer PAYE reference and Accounts Office reference

And that’s it. Now you must wait for a letter in the post. This will contain the Activation Code you need to access the service for the first time.

Go to HMRC Online services now to start the registration process

If you’ve already used another HMRC online service as a business

Follow the link below and log in using your existing User ID and password, then follow the on-screen instructions to enrol for PAYE. You’ll receive an Activation Code in the post within ten working days.

Go to HMRC Online services now to start the registration process

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Activating the PAYE Online for employers service

To log in to the PAYE Online service, you start by entering your User ID and password.

The first time you log in you will also be asked to type in the Activation Code that was posted to you – then, the service will be activated.

This must be done within 28 days of the date of the letter containing the Activation Code.  If you lose your Activation Code or do not activate your service within the 28 days, you will have to request a new code.

To do this, log in using your User ID and password, click on ‘Activate’, and then click on ‘Request a new PIN’.

Go to HM Revenue & Customs Online services now to start the activation process

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