Hiring someone new? Let's get the paperwork sorted.
Taking on your first employee is exciting.
It's also the point where you suddenly have to think about PAYE, payroll, tax codes, pensions, right-to-work checks and employment documents.
Don't worry. Here's what you need to organise before your new starter's first payday.
1. Get their personal details
You'll generally need:
Full legal name
Date of birth
Current home address
National Insurance number, if available
Start date
Contact details
Bank details for paying wages
Make sure their legal name matches their official documents. Incorrect starter information can cause tax-code and payroll issues later.
2. Ask for their P45
If your employee has recently left another job, they should normally receive a P45 from their previous employer.
This helps you work out the correct starting tax code and payroll information.
No P45? Don't panic.
Ask them to complete HMRC's official Starter Checklist instead.
This helps identify their employment circumstances and whether they have another job or pension.
3. Check student loan information
You'll need to consider whether the employee has a student or postgraduate loan.
Payroll deductions depend on the relevant loan plan, thresholds and information available to the employer.
Don't just assume everyone has the same student loan plan.
4. Complete right-to-work checks
Employers must check that someone has the legal right to work in the UK before employing them.
The appropriate checking method depends on their immigration status and documents.
Keep suitable records of the check in accordance with current Home Office guidance.
5. Provide employment documents
Your new employee should receive their legally required written statement of employment particulars.
This covers important information such as:
Job title
Pay
Working hours
Holiday entitlement
Place of work
Notice arrangements
Other required employment terms
A full employment contract may contain additional provisions.
6. Sort workplace pensions
Check your automatic enrolment duties.
Depending on the employee's age, earnings and circumstances, you may need to enrol them in a qualifying workplace pension and make employer contributions.
Even if someone doesn't need automatic enrolment immediately, you may still have pension-related responsibilities.
7. Add the employee to payroll
Before their first payday, make sure your payroll system contains the correct starter information.
You normally report the employee's details to HMRC through your Full Payment Submission (FPS) on or before payday.
If they're your first employee, you may need to register as an employer with HMRC.
Your new employee checklist
Personal details collected
P45 or HMRC Starter Checklist received
Student loan details checked
Right-to-work check completed
Employment documents issued
Holiday entitlement confirmed
Workplace pension duties reviewed
Payroll record created
First payday and reporting arrangements confirmed
Download the official starter checklist
Use HMRC's current Starter Checklist rather than an unofficial replacement.
Need help running payroll?
Accounting On You supports businesses with PAYE, payslips, payroll reporting and ongoing payroll administration.
You welcome the new employee. We'll help keep the payroll side organised.
Visit www.accountingonyou.com for our payroll services.
This is a general onboarding checklist, not a substitute for employment-law advice or an individual right-to-work assessment.