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If you are a business operating in the United Kingdome, you would we well-aware of HMRC and how you need to pay the taxes and submit the financial reports to the authority. It is noteworthy to deduce that national insurance contributions and income taxes are charged from the employees known as PAYE. Mostly, the student loans make up a huge chunk of the PAYE, along with the pension contributions. As an employee, these charges will be cut from your monthly salary on a regular basis rather than a lump sum amount on an annual basis.

To pay the PAYE, you have entitled the tax code, which inculcates all the information ranging from the details jobs to name and from job designation to the amount to be charged. If you are registered for PAYE, the charges will be deducted automatically, and the benefits will be added on an automatic basis as well. There are considerations for the non-extra income people and for the people who use state pension, and that includes the self-assessment return, which is a must to fill in.

How to Register As an Employer

Whenever a business starts operating in the UK, they need to register for PAYE as an employer even if the scale talks about one employee at a time. However, it is crucial for the businesses to register for PAYE before they initiate the payment inflow or outflow. While preparing for the PAYE registration, the businesses are required to provide the employee information along with the business details. After registering for the PAYE, businesses are entitled to perform the development of the payroll system. Also, it is essential to prepare the returns and pay HMRC.

After hiring the first employee of your business, the business is required to register for PAYE. There is a multitude of considerations to be met inclusive of;


  • The employee needs to have employee benefits such as insurance and a car given by the employer
  • The employee needs to have the earning more or equal than £11,500 per annum. In the case of National Insurance, Lower Earning should be £5,878 per annum 
  • The employee has a side job or any other means of income

There is no deadline for the PAYE registration as soon as you are registering before the first payment. This is essential because, without registration, the companies aren’t allowed for the payroll system development. When you opt for the PAYE registration, it will take two weeks to get the reference numbers. However, if you opt for the online registration, there are higher chances of cancellations. At MintAccountax, we can help you with PAYE registration.

How Employers Deduct PAYE Tax

When we complete the PAYE registration process, we ensure that tax codes will be provided. This will help your business in deducting the exact amount from the employee’s salary. In case you don’t have the tax code, we will provide the emergency tax code. To ensure the optimal registration process, we will need the employer to provide;


  • The potential pay slips of the employees
  • Pension statement of the extra income


ERN (Employee Reference Number)

For registering your business through the HMRC as an employer, we will provide the employee reference number. As an employer, the ERN will help in catering to the tax department along with other government authorities. This reference number is essential for applying for the student loans, tax credit, and when you are registering for liability insurance.

However, if you don’t have employees and if the annual salaries don’t surpass the threshold amount, you aren’t liable to register for PAYE. However, before making a final, let our accountants take charge, calculate the numbers for you and see if you need the registration. This is essential as the penalties can be a huge dent on the business finances. 

How Do PAYE Schemes Work?

After registering as an employer for HMRC, the PAYE scheme can be registered online, and once the application is submitted, you will be provided with a PAYE reference number. Them you can register for the accounting software to acquire the payroll services. However, we handover the system to you; we implement P45 to ensure that the tax code is added for each employee.

So, if you need to register for the PAYE, get in touch with our expert team of accountants!

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