Steps to set up PAYE for the first time

Steps to set up PAYE for the first time

Setting up PAYE is relatively straightforward but takes several weeks to two months to set up. Follow the steps below.

Share article

Setting up PAYE is relatively straightforward but takes several weeks to two months to set up. Follow the steps below.

Before you are able to run payroll, you need to set your organisation up with HMRC. HMRC details the steps for you to take in order to do so. You will need your National Insurance number, a UTR, and an HM gateway account. These processes take a minimum of several weeks to complete and cannot be expedited so plan accordingly. After these steps, your organisation will be set up to run payroll.

1. Set up an company or organisation

Please note, we expect your organisation to already be legally set up in the UK as a limited company, a partnership, charity or be self employed. If you need to guidance on setting up a company or need to do so, many companies such as FirstFormations to help with the typical boilerplate needed, though it is advisable to contact a tax consultant and/or a lawyer to optimise the set up for your requirements and specific situation.

2. Obtain a UTR from HMRC & set up your HM Government Gateway online account

Obtain UTR— Obtaining a UTR for the first time is a two step process and takes several weeks - up to 8 weeks, so plan accordingly.

What if I already have a UTR?
You will need to have your UTR (unique tax reference), which is cited on documents sent to you from HMRC. If you don’t know your UTR, you have to contact HMRC. For more information see click here.

3. Register your organisation as an employer

Registering as an employer
To do this requires several weeks but must be done even if you are just employing yourself.

4. Register for PAYE

Register for PAYE through your government gateway account online.

5. Set up details in ShiftAI

You are now ready to set up payroll in ShiftAI. Read our setting up guide or if you feel comfortable enough, go straight to your ShiftAI.

What will your team do with Newpayroll?