Thinking of employing someone?

Taking on an employee can be a daunting task for an employer, regardless of their size or the sector within which they operate.

The host of legislation that an employer has to comply with, simply because they need an extra paid of hands to help them deliver the business they love is quite simply enough to put off all but the bravest of souls.

However, the fear that somehow they are going to get the tax wrong and end up having a run in with the tax man (or woman), is probably the single biggest fear that an employer will encounter.

There is however a lot of help available to employers to help them in their journey through the minefield of rules and regulations affecting the calculation of tax, National Insurance, student loans and Statutory Payments.

First steps

The first step, is registering as an employer with Her Majesties Revenue & Customs (HMRC), this needs to happen when you start to employ someone and your employee has another job or their earnings are equal to or above £105 per week (PAYE Tax threshold 2008/2009) or their earnings are equal to or above £90 per week (National Insurance Lower Earnings Level).

You will also have to register if you have provided your employee with a benefit in kind e.g. providing an employee with the use of your property or equipment, e.g. a car or living accommodation or have given them something e.g. a car or a television, or you have sold it to them for less than it is worth even their earnings are below the thresholds above.

You can register by:

Email: Click here to go to HMRC website  

Telephone: 0845 6021380