§ Guide

PAYE Registration (Register as an Employer): does it apply to you?

Income Tax (Pay As You Earn) Regulations 2003

When this applies

You must register as an employer with HMRC and set up PAYE before your first payday, this applies even to a single director paying themselves through the company. Registering late does not remove the liability, HMRC backdates it to your first payday.

When it does not apply

PAYE registration only applies once you pay anyone through payroll, including yourself as a director. No action required if you have no one on payroll.

What is at stake

If you pay staff before registering, HMRC backdates your PAYE scheme to your first payday, so you owe all the tax and National Insurance you should have deducted from that point, plus interest. Missed monthly Full Payment Submissions carry their own penalties, from £100 a month (1 to 9 employees) up to £400 a month (250 or more).

What to do

Register as an employer with HMRC before your first payday, at gov.uk/register-employer. This applies even if you are the only person on the payroll, for example a sole director paying themselves a salary. You cannot register more than 2 months before your first payday, and registration can take up to 5 working days, so start it as soon as you know your start date.

Reviewed: 2026-09-13  ·  Source: official guidance