PLEASE NOTE: The charity TaxAid advises only those people on low incomes whose problems cannot be resolved with HMRC.

Registering with HMRC

Note for employers

You need to register as an employer if:

  • There is tax or National Insurance due on the amounts you are paying , or the employee is entitled to National Insurance credits, or
  • This is a second job, or the employee has a state or other pension in addition to the employment. This would apply if you are a director of your own limited company and also have another employment, or
  • The employee will have taxable benefits in kind in this employment

Tax and National Insurance limits

The relevant income tax and National Insurance thresholds for 2014-15 are:

  •  for income tax –  £192 per week
  • for National Insurance – the Lower Earnings Limit is £111 per week

(for 2013/14:  for income tax – £181 per week,  and for National Insurance, the Lower Earnings Limit – £109 per week).

Note – Neither employee’s  nor employer’s National Insurance is payable until pay reaches £153 a week, but the employee receives National Insurance credits once pay reaches £111 a week (based on 2014-15 rates).

How to Register

You need to register in advance to ensure that you can comply with the PAYE Real Time Information rules from the first payday.  Most employers register by phone or on-line.

Details of how to register can be found at https://www.gov.uk/register-employer