{"id":11581,"date":"2024-02-18T10:17:04","date_gmt":"2024-02-18T10:17:04","guid":{"rendered":"https:\/\/www.qualitycompanyformations.co.uk\/blog\/?p=11581"},"modified":"2024-11-08T13:48:15","modified_gmt":"2024-11-08T13:48:15","slug":"how-to-set-up-payroll","status":"publish","type":"post","link":"https:\/\/www.qualitycompanyformations.co.uk\/blog\/how-to-set-up-payroll\/","title":{"rendered":"How to set up a payroll for your small business"},"content":{"rendered":"
\n Last updated: 8 Nov 2024<\/strong>\n <\/div>\n \n

All UK companies need to set up a payroll scheme if they employ (or plan to employ) staff. This can be done with the help of an accountant, but it\u2019s common for small companies to set up and run payroll themselves.<\/p>\n

In this article, we discuss our step-by-step guide to setting up a payroll scheme (also known as a PAYE scheme) without an accountant. This covers everything you need to know, including how and when to register as an employer, and the key information you need to capture in an employee\u2019s payslip<\/p>\n

Step 1: Register as an employer<\/h3>\n

If you currently have employees (including subcontractors), or plan to hire and pay them within the next 2 months, you\u2019ll need to register as an employer<\/a> and get a login for PAYE Online before the first payday.<\/p>\n

The PAYE system allows HMRC to collect Income Tax and National Insurance contributions (NIC) from your employees. Please note that you cannot register more than 2 months in advance.<\/p>\n\t\t

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You also need to register if you, the owner, are a director and are taking (or planning to take) a salary or any other benefits from the company. The only exemptions from registration are if none of your employees (including directors):<\/p>\n