If this is your first time employing a new employee for your business, your company must register to join the Pay As You Earn (PAYE) scheme with HM Revenue and Customs (HMRC), you will be effective an employer after you joined.
The registration application must be submitted to HM Revenue and Customs four weeks before the first salary is made to your new staff.
Get P45 from your new employee
As new employer, you must request your new employee to provide you with Part 2 and Part 3 of Form P45. This form will have been given out to your new employee by his/her previous employer. You then submit the Part 3 of P45 to HMRC.
In a situation where your new staff does not have the Form P45 because this is his/her first job in the United Kingdom or that he/she has not been in employment for a long time, you will then require him/her to fill in the Form P46 then send it to HMRC.
If the new employee you are taking on is starting work in the UK for the first time you must advise them to apply for a National Insurance number from local Job Centre Plus.
Other important filings for your business
In addition to registering your company for PAYE, you must deliver your confirmation statement and company accounts to Companies House every year.
The employment law requires an employer to inform your staff of any salary deductions in advance.
In other words, your staff is entitled to know in advance what are the deductions from his/her gross salary or wage and why. Generally, most deductions are regulated under the Employment Rights Act 1996. Therefore, your employees’ contracts must clearly explain in what circumstances you can make such deductions. On the other hands, your staff may provide you with written consent to make them.
Lawful salary deductions
Some deductions are allowed under the Employment Rights Act. They are listed below.
- Pay cut for previous over-payment of wages
- Deductions under Pay As You Earn (PAYE) scheme provisions such as income tax and National Insurance contribution.
- Deductions that you make by law and hand over to a third party, such as an attachment of earnings order.
- You pay to a third party where your staff consents in writing such as payments to a pension company.
- Pay cut relating to strike action.
- Salary cut to satisfy a ruling by a court or tribunal that your staff has to pay you a certain amount.
Unlawful pay deductions
However, if you intend to make any deductions not shown on this list above, you would require a written consent from your staff. Ideally, you must have the consent in writing before the deductions happened. Otherwise, the deduction is considered unlawful. Even if you get consent afterward. This is because you have changed an employees’ pay without their consent. Effectively, this is in breach of contract. Unless, you have included a provision in your employment contract that in the particular circumstances you can take money out of their salary.
If you are making exactly the same fixed deductions each period, you can give out standing payment statement notifying of these deductions in advance. The standing statements may be valid for up to a year.
Your payslip must present any variable or additional deductions. And, You must notify your staff in writing of any changes to the fixed deductions.
Other important obligations
In addition to taking care of your obligation as an employer, If your business is a registered a company then you must deliver your confirmation statement and company accounts to Companies House every year.
The UK company law requires a limited company to display their company details on their official company stationery. For this purpose, official company stationery is any form of communications used exclusively for your business purposes. For example, you must include your company name on all your letters, promotional materials and so on.
Information to display on your stationery
Generally, you are to include the following information on your company secretary.
- company full name.
- company registration number.
- Registered office address.
- Country of registration whether your company was incorporated in England and Wales or Scotland or Northern Ireland.
- Official company logo.
Your official company stationery
Universally, your company stationery would include the following materials.
- Company letterhead.
- Marketing and advertising materials – your prospectus.
- Compliment slip.
- Business card.
- Sale invoice.
- Credit note.
- Company’s website.
- Business email signature.
- Company seal.
- Legal agreements or contracts.
- Official publications about your company.
However, they are different rules on what to include in your sale invoice. For instance, if your company has registered for Value Added Tax (VAT), then you must include your VAT number on your invoice. On the other hand, you do not need to add a VAT number if your company is not yet register for VAT.
Companies House filings
Additionally, you must also submit the following documents to Companies House every year for your UK company.
You can do it online. All you need is your company’s authentication code issued by Companies House. The authentication code is the electronic equivalent of your company’s director(s) signatures. Keep safe your authentication code.
If you require help with your UK company’s filings, contact us. Our accountants can help you.