Here are the key things HMRC expects you to do when employing staff for the first time.
- Decide how much you are going to pay your employee. You must pay your employee at least the National Minimum Wage.
- Check if someone has the legal right to work in the UK. You may have to do other employment checks as well.
- Apply for a DBS check, formerly known as a CRB check, if you work in a field that requires one (e.g. with vulnerable people or security).
- Take out employment insurance. You need employers’ liability insurance as soon as you become an employer.
- Send details of the job, including terms and conditions, in writing to your employee. You need to give your employee a written statement of employment if you’re employing someone for more than one month.
- Tell HMRC that you are now an employer by registering as an employer. You can do this up to four weeks before you pay your new staff.
- Check if you need to automatically enrol any of your employees into a workplace pension scheme.
In addition, be aware of your responsibilities for:
- Making statutory payments (e.g. SSP, SMP) – see: SSP employer guide and SMP guidance.
- Giving paid statutory holiday entitlement – see: Holiday entitlement rights.
- Complying with your duties as set out by The Pensions Regulator (TPR), including pensions auto-enrolment. See: The Pensions Regulator.
If you need help with this or any other accountancy, tax and small business issues, get in touch for a no-obligation discussion – see our Contact Us page for how to reach us.
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Information in this publication is intended to provide only a general outline of the subjects covered. It should neither be regarded as comprehensive nor sufficient for making decisions, nor should it be used in place of professional advice. Whyatt Accountancy and the writer accept no responsibility for any loss arising from any action taken or not taken by anyone using this material.