Employing staff for the first time
If you’re paying yourself as a director of a limited company and/or paying other employees, you’ll need to register for a PAYE scheme with HMRC:
Register as an employer
All employers will have to provide workers with a workplace pension scheme by law over the next few years, by 2018. This is called 'automatic enrolment' :
When your business must start doing this - called a 'staging date' - depends on how many people you have on your payroll. If you don't already offer your workers a workplace pension scheme, you must set one up before your staging date. Use The Pensions Regulator’s Duties Checker to find out what you need to do and when you need to do it:
The Pensions Regulator
At some point, there's a good chance that one of your employees will not turn up for work because they are sick. If this happens, you may still have to pay them something, even though they are not at work.
This is known as 'Statutory Sick Pay' or SSP.
There are other types of statutory payments that you may need to make to your employees should they meet certain criteria. For example, if your employee tells you she is going to have a baby you will need to consider paying Statutory Maternity Pay (SMP).
Partners may also be entitled to receive Statutory Paternity Pay (SPP) or Shared Parental Leave (SPL) and Statutory Shared Parental Pay (ShPP) if they’ve had a baby or adopted a child.
There is also Statutory Adoption Pay for those employees who adopt a child.
Paying expenses and providing benefits to employees
Something else you need to be aware of is the payment of expenses and the provision of benefits to your employees or yourself as a director.
Expenses are payments made to employees to cover business costs that they have met or will meet. Examples include the reimbursement of travel costs that an employee has paid for with their own money when out visiting a customer, and also business mileage payments for any business travel an employee has done using their own private vehicle.
Benefits, sometimes referred to as 'benefits in kind' are, generally speaking, anything you provide to your employee that is not pay or expenses. Common examples include health insurance and the use of a company car.
As an employer, you may have to report details of any expenses and benefits to HMRC and pay tax and National Insurance contributions on them.
Find more help and support when employing staff on the following link: Help and Support for Employing People
This message was edited 2 times. Last update was at 29/01/2019 14:36:23