How to Register for PAYE as an Employer in the UK

Hiring your first employee is an exciting step; setting up PAYE doesn’t need to slow you down. Missing a step, waiting on HMRC responses or misplacing your references can quickly turn payroll into a stressful admin task.  With the right preparation, registering for PAYE is straightforward and sets your payroll up for smooth, compliant operations. 

This guide explains what PAYE is, when and how to register as an employer, what happens after registration, and how to prepare for your first payroll run, including practical tips on how to keep it stress-free. 

PAYE, or Pay As You Earn, is the system HMRC uses to collect Income Tax and National Insurance from employees' wages. As an employer, you’re responsible for operating PAYE correctly through payroll, ensuring deductions are accurate and submitted on time. 

PAYE connects payroll deductions to HMRC reporting, keeping tax collection simple for employees and compliant for businesses. To understand PAYE in more detail, read our guide ‘How Does PAYE Work? The PAYE system for Employers’.

You’ll need to register for PAYE if you: 

• Pay employees or directors £96 or more a week
• Employ someone who already has another job or pension 
• Provide taxable expenses or benefits 
• Use CIS subcontractors

Even if you’re unsure, it’s better to check early with HMRC than to delay. Starting payroll without registration can create unnecessary complications.  

You must register for PAYE before your first payday, but not more than two months in advance. This timing allows HMRC to process your application and issue your references, so you can run payroll without interruptions. Planning ahead avoids last-minute stress and ensures you meet your legal obligations.

Step-by-step registration keeps the process clear and manageable. While PAYE registration isn’t complicated, knowing which route applies to your business helps avoid delays. The steps below outline how to register, what decisions you’ll need to make, and where to check official guidance so you can move forward with confidence. 

If you’d prefer guidance through the process, our experienced team is here to help. Get in touch to find out the correct route for your business for PAYE registration and ensure everything is set up correctly from the start.

Most limited companies with 1–9 directors can register online. Other business types may need a different process, so check GOV.UK registration tool to confirm the right route.

Having everything ready makes registration simpler: 

• Business name, address and contact information 
• Payroll start date and first payday 
• Expected number of employees 
• Accounting and tax information

Submit your details via the official GOV.UK register as an employer page.

Once registered, HMRC will send your Employee PAYE reference by letter. This reference acts as your payroll ID and is used whenever you report employee pay and deductions to HMRC. 

You’ll also receive your Accounts Office Reference, which is separate and used specifically when making PAYE payments to HMRC, such as tax and National Insurance. Both references are essential for running payroll; it’s important to store them securely and have them ready for submissions and payments.  

You can use The Pensions Regulator website for more information on where to find your Accounts Office Reference number.

Once registered, follow these high-level steps: 

• Choose payroll software
• Keep accurate records of employee pay 
• Tell HMRC about each employee
• Record pay and deductions, and submit via Full Payment Submission (FPS) on or before payday

If you register online, HMRC will send an activation code within 10 days. You must activate within 28 days to start submitting payroll data digitally.

If your first payday arrives before you’ve received your references: 

• Run payroll and securely store your FPS submissions 
• Submit the FPS as soon as your reference arrives
• Use the correct ‘late submission’ reason on GOV.UK

Remaining organised ensures compliance and avoids unnecessary penalties.

• Confirm PAYE triggers apply to your business 
• Register before your first payday (within a 2-month window)
• Keep your PAYE and Accounts Office references safely stored
• Set up PAYE Online and activate the account
• Choose payroll software and have employee details ready
• Tell HMRC about new employees on or before the first payday (Use starter checklist if no P45)

At Payroll Solution Services, we take the hassle out of PAYE registration and payroll setup. Our team ensures everything is accurate, compliant and on time, from initial registration to the first payroll and ongoing submissions. 

Whether you’re a CIS, SME or a larger organisation, we reduce risk, streamline administration and provide expert support, so you can focus on running your business. 

Simplify your PAYE, set up and payroll process. Get in touch with our expert team today.

Registering for PAYE early and following a clear process sets your payroll up for success. Accurate records, timely submission and a reliable system protect your business and give employees confidence in their pay. 

Use our step-by-step guidance, plan ahead for your first payroll and get expert support if needed. With the right support, PAYE registration and payroll can be straightforward, stress-free and fully compliant. 

When do I need to register for PAYE as an employer? 

You need to register for PAYE before your first pay run, but no earlier than two months before you start paying staff. This gives HMRC time to set up your employer account and send the required references. Registering early helps to reduce the pressure and keep you compliant from the beginning. 

How close to payday can I register? 

A week before the first payday is the latest we would advise, to give HMRC time to send the required references. You can register up to two months in advance. 

What is an employer PAYE reference, and where do I find it? 

Once registered, HMRC will send your Employee PAYE reference by letter. This reference acts as your payroll ID and is used whenever you report employee pay and deductions to HMRC. 

What is an Accounts Office Reference, and what is it used for? 

You’ll also receive your Accounts Office Reference, which is separate and used specifically when making PAYE payments to HMRC, such as tax and National Insurance. 

What do I do if a new employee doesn’t have a P45? 

You must tell HMRC about new employees on or before the first payday. If a new employee doesn’t have a P45, you can get them to complete a new starter checklist found on the GOV.UK website here.