PAYE is the system used to collect income tax and national insurance from your UK employees. The PAYE scheme does not apply to staff employed outside the UK. If you employ one or more staff in the UK earning over the Lower Earnings Limit (LEL) of £120 per week, you are obliged to register as an employer so that you can operate PAYE.
Single company owner-managers.
Companies are often owned and managed by one person who is both shareholder and director. If the director is UK resident and taking more than £120 per week as a salary or benefits, the company will also have to register for PAYE. A director who, in his capacity as shareholder, is only taking dividends does not need to be in the PAYE scheme.
Information required for PAYE registration
The following information is required to register a company from PAYE:
- Company name
- Company number
- Business trading address
- A description of the company’s activities
- The number of employees
- The date of the first payday
- The name and national insurance number of the director/s
- If there are any sub-contractors.
The PAYE application
Once we have your details, we will submit your application. Unless HMRC requests any additional information, they will register your company to operate a PAYE scheme. HMRC will send details of your registration to your place of business or your registered office.