Registering as an employer

here is no automatic obligation to register as an employer once you have employed someone. However, if one of the following conditions applies to an employment, you have to register with HM Revenue and Customs as an employer:

  • The employee you are going to take on has already another job.
  • The employee receives a state or company (occupational) pension.
  • You intend to pay the employee at or above the National Insurance Lower Earnings Limit (LEL), which is £97 a week or £421 a month or £5,044 a year for the tax year 2010-2011.
  • You are going to provide the employee with benefits such as company car, private medical insurance, childcare or travel and entertainment expenses.

If you are supposed to register as an employer, you can do it up to four weeks before taking someone on. The registration is also mandatory for so-called one-person limited companies with the same person being a sole shareholder and employed as a company director.


To register as an employer you will have to provide HMRC the following information:

  • Your name, address, contact telephone number and email address.
  • The name and type of your business and its trading address as well as other business or company details.
  • Your National Insurance Number (NIN) – Find out more about NIN…
  • Your Unique Taxpayer Reference (UTR) – Find out more about UTR…

Apart from that, you will have to supply the following information about your employees and the way you want to manage your payroll:

  • The date you took into employment your first employee.
  • How many employees you intend to take on.
  • The date of the first pay and how often you are going to pay your employees.
  • The name, address and contact telephone number of a person or business looking after your payroll.

If you intend to employ people you have to keep in mind that an employee is someone engaged to work for you under a “contract of service” which can be written, oral, implied or a mixture of all three. An employment contract comes to existence when an applicant accepts your offer for a full time, part-time, casual or temporary job. Find out more about the difference between the employment and self-employment…


A new employee who has already had a previous job or been on state benefit, should provide you with a form P45 containing his National Insurance Number, tax code and total pay along with deductions to the date of the termination of his last employment. These details are needed to manage employees’ payments under the PAYE system. If an employee does not have a form P45, he will need to complete a form P46 giving the above details.


For years, Capital Business Links Ltd has been successfully providing businesses with accounting and taxation services connected to employment issues. Therefore, if you have any enquiries in this regard, please contact us as soon as possible on telephone number 0208 567 99 44 or at our e-mail address.