Running a limited company involves many responsibilities, one of which is registering as an employer. Even if you are only employing yourself as a director, in most cases you will still need to complete this registration.
When do you need to register as an employer?
Your limited company must register as an employer when you
- pay at least one employee (or director) a minimum of £123 per week,
- employ anyone who has another job or receives a pension,
- provide expenses or benefits to an employee or director of the LTD company,
- use subcontractors for construction work under the Construction Industry Scheme (CIS).
In other cases, registration as an employer may not be mandatory. However, you will still need to maintain records showing how much you are paying to those you employ.
What are the options for employer registration?
There are several ways to register your limited company as an employer:
1. Online Registration
In most cases you can register your LTD online. Simply log in to your HMRC account and set up PAYE by selecting the appropriate option. The next steps will be displayed on screen. HMRC will ask for information such as your registered office address, UTR (Unique Taxpayer Reference) and the nature of your business.
Employer registration must be completed at least two months before you start paying your employees or directors. However, it is best to do this before you make your first payment so that you can obtain a PAYE reference number. Although you can pay before you receive a PAYE reference number, you will still need to keep payroll records and send reports to HMRC.
2. Telephone or Postal Registration
If your LTD company has 10 or more directors, or if none of the directors has a UK National Insurance number, registration cannot be done online. Instead, you will need to register by telephone or by post. Within a few days of registering, you will receive a letter with your PAYE and National Insurance details. Note that you will still need to register separately for the online PAYE service.
3. Using an Accountant’s Help
You do not have to deal with employer registration yourself – a nominated person can contact HMRC on your behalf. It is best to entrust this task to someone who is familiar with the registration process and the formalities involved.
As a UK accountancy firm with years of experience in assisting LTD company owners, we can do this for you. We will assess whether employer registration is required in your case and, if so, take the necessary steps.
By using our services, you can forget about tedious formalities and focus more on what you really want to do—running your business.
