In order to hire employees, including directors, each company must register as an employer in the PAYE system (Pay As You Earn). This means that all official fees - mainly Income Tax and National Insurance Contributions are calculated and should be paid by the employer depending on the amount of the employee's income.
The employer’s registration in the PAYE system is required from every potential employer, whereas 'Pay As You Earn' is a universal, generally accepted form of employee settlement and calculating tax fees.
Registering employees is necessary in any company that wants to have legally registered employees, even if they are only the directors/owners of the company. All entrepreneurs should remember that registering the company in Companies House is not sufficient to hire employees and that only after receiving the PAYE number, the registration of the employer is legally valid. In the case of employees who do not have a NIN (National Insurance Number), there is a 3-month transition period during which they have the responsibility to receive this number.
Employer registration in the UK takes about 2-3 weeks, and the only requirement, apart from having a registered business, is having at least one of the company's directors possess a National Insurance Number.
An employers' registration in the PAYE system can be performed by both Limited Companies and self-employed individuals, as well as Partnership owners. If you need help with the employer registration and do not know how to do it, download the form and send it to us or contact us.
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