Key facts
- Register before your first payday — up to 5 working days before you need to run payroll.
- Registration is done online via the GOV.UK employer registration service.
- HMRC will send you an Employer PAYE Reference and an Accounts Office Reference.
- You must register even if you only employ one person (including yourself as a director).
- There is no charge to register for PAYE.
When Must You Register?
You must register as an employer with HMRC if you plan to pay any of the following:[1]
- An employee (full-time, part-time, or casual) earning at or above the Lower Earnings Limit (£125/week in 2025/26)
- Yourself a salary as a company director
- A subcontractor under the Construction Industry Scheme (CIS)
- Any worker from whom you need to deduct student loan repayments
- Expenses or benefits that need reporting through payroll
Registration should be completed before your first payday. Allow up to 5 working days for HMRC to process your application and send your reference numbers.
How to Register: Step by Step
Step 1: Gather your information
Before you start, you will need:[3]
- Your business name and trading address
- Your company registration number (if a limited company) or UTR (if self-employed)
- The date of your first payday
- The number of employees you expect to have
- Details of any directors
Step 2: Register online
Go to gov.uk/register-employer and follow the registration process. You will need a Government Gateway account — if you do not have one, you can create one during registration.[1]
Step 3: Receive your references
HMRC will send you two important references by post:
| Reference | Format | Used For |
|---|---|---|
| Employer PAYE Reference | 123/AB45678 | Identifying your PAYE scheme in RTI submissions, on P45s, P60s, and correspondence |
| Accounts Office Reference | 123PA00012345 | Making PAYE payments to HMRC |
Step 4: Set up payroll software
Once you have your references, enter them into your payroll software. You can use:
- HMRC Basic PAYE Tools — free software for employers with up to 10 employees
- Commercial software — Sage, Xero, QuickBooks, FreeAgent, BrightPay, Moneysoft, and many others
- A payroll bureau or accountant — they operate payroll on your behalf
Step 5: Add your employees
Set up each employee in your payroll software using their personal details, NI number, tax code (from their P45 or HMRC notification), and start date.
Tip: If you are registering a new limited company and know you will need PAYE, you can register as an employer at the same time as incorporating your company through the Companies House and HMRC joint registration service.
Scenarios Where Registration Is Required
| Scenario | Register for PAYE? |
|---|---|
| Limited company director taking a salary of £12,570/year | Yes |
| Limited company director taking only dividends, no salary | No |
| Hiring your first part-time employee at £200/week | Yes |
| Sole trader hiring a casual worker for one day | Yes (if you pay them) |
| Using self-employed contractors only | No (but check employment status carefully) |
| Charity using unpaid volunteers only | No |
What Happens After Registration
Once registered, you must:[2]
- Run payroll on each payday, calculating Income Tax and NI deductions
- Submit a Full Payment Submission (FPS) to HMRC on or before each payday
- Pay the deductions to HMRC by the 22nd of the following month
- Issue payslips to employees
- Keep payroll records for at least 3 years
You can claim the Employment Allowance (£10,500 for 2025/26) on your first Employer Payment Summary (EPS) if eligible, which reduces your employer NI bill.
Closing Your PAYE Scheme
If you stop employing people, you can close your PAYE scheme by telling HMRC. This can be done through your payroll software or by contacting the Employer Helpline. Make sure you have submitted all outstanding FPS and EPS returns, issued P45s to any departing employees, and paid all amounts owed before closing.
Frequently Asked Questions
How long does PAYE registration take?
Online registration typically takes up to 5 working days. HMRC will send your Employer PAYE Reference and Accounts Office Reference by post. In some cases it can take up to 2 weeks, so register well before your first payday.
Do I need to register if I pay myself below the tax threshold?
If you are a company director taking any salary, you should register for PAYE. Even if the salary is below the Personal Allowance or NI Primary Threshold, HMRC expects you to operate PAYE and submit RTI returns. The only exception is if you take no salary at all and are paid entirely through dividends.
Can I register for PAYE by phone or post?
In most cases you must register online. However, if you cannot use the online service (for example, due to a disability), you can call the Employer Helpline on 0300 200 3200 to register by phone. You cannot register by post.
What if I miss the registration deadline?
If you pay employees before your PAYE registration is complete, register as soon as possible. You will need to submit late FPS returns for any paydays that have already passed. HMRC may charge penalties for late reporting, although the first late FPS in a tax year is usually penalty-free.
Further Reading
- PAYE Reference Numbers & Accounts Office — understanding and finding your reference numbers
- How PAYE Works (Employer Obligations) — the full employer payroll process
- PAYE for Single Directors — running PAYE when you are the company’s only employee
- Full Payment Submission (FPS) — your first RTI submission to HMRC
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Sources
- Register as an employer — GOV.UK
- PAYE and payroll for employers — GOV.UK
- Set up as an employer — GOV.UK