Set yourself up as an employer

First steps in taking on a new employee

There's a certain amount of form-filling involved when you take on an employee. The aim of this initial paperwork is simply to make sure that you have a record of the new employee's details, and to keep HM Revenue & Customs informed.

What your employee needs to do
Your new employee must provide you with:

their P45 - if they have one - this should have been provided by their previous employer
their National Insurance (NI) number
If your new employee doesn't have a form P45, see the page in this guide on what if my new employee doesn't have a P45?

If your new employee doesn't have an NI number or doesn't know their number, see the page in this guide on when a new employee doesn't have or know their NI number.

What you need to do
You will need to record your new employee's details so that you can pay them the right amount - and make the correct deductions - when payday comes. You'll also need to tell HM Revenue & Customs about your new employee. How you do this depends on whether or not a P45 is available.

Read more information on taking on a new employee on the HM Revenue & Customs website.

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

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