New Employer Compliance Checklist
Hiring your first employee is a milestone for your business, but it also brings new legal and financial responsibilities. This checklist will guide you through the 5 essential steps to becoming a compliant UK employer.
1. Register as an Employer with HMRC
Before you can pay anyone, you must register as an employer with HMRC. You should do this up to 4 weeks before your first payday.
- Action: Apply for your PAYE (Pay As You Earn) reference number online.
- Timeline: Allow at least 5-10 working days to receive your reference numbers.
2. Check Right to Work (RTW)
It is your legal responsibility to ensure that anyone you hire has the legal right to work in the UK.
- Action: Use the official government "Check a right to work" tool.
- Compliance: Keep a digital copy of the check results in your HR system.
3. Set Up Workplace Pension Duties
The law requires almost every employer to set up a workplace pension and automatically enrol eligible staff.
- Action: Choose a pension provider (like NEST or Smart Pension).
- Compliance: Send your "Declaration of Compliance" to The Pensions Regulator within 5 months of your duties starting.
4. Issue a Written Statement of Particulars (Contract)
By law, you must provide employees with a written statement of employment particulars on or before their first day.
- Action: Include details like start date, pay rate, holiday entitlement, and notice periods.
- Compliance: Ensure the contract adheres to current UK employment law.
5. Choose HMRC-Recognized Payroll Software
You cannot run payroll manually if you have employees. You must use software that can submit RTI (Real Time Information) directly to HMRC.
- Action: Select a platform like Workmax that automates tax, NI, and pension calculations.
- Compliance: Ensure your software is ready for the current 2026/27 tax year.
How Workmax Helps New Employers: Workmax simplifies this entire process by automating your HMRC submissions, assessing staff for pension auto-enrolment, and storing your Right to Work checks securely in one place.
