PAYE guide for first-time UK employers
PAYE is the system HMRC uses for collecting Income Tax and National Insurance from employment. If your business employs people, payroll tasks can become one of your most regular deadlines.
Written by the Business Sorted editorial team · Reviewed 18 July 2026
- Last reviewed
- 18 July 2026
- Next review
- Within 3 months, or sooner if official guidance changes.
- Primary sources checked
- PAYE and payroll for employers, Register as an employer, HMRC
Need to know in 30 seconds
PAYE is the system HMRC uses for collecting Income Tax and National Insurance from employment. If your business employs people, payroll tasks can become one of your most regular deadlines.
The safest next step is to identify whether this applies to your business, check the official source and set a preparation reminder before the filing or payment date.
What it is
PAYE is HMRC's payroll system for employment taxes. Employers use it to report pay, Income Tax, National Insurance and other payroll details.
Who it applies to
This guide applies to businesses that employ staff or directors in circumstances where PAYE registration and payroll reporting are required.
Why it matters
This topic matters because missed filings, unclear records or late payments can create avoidable admin, penalties, interest or extra support work. A simple reminder is useful only when it is tied to the correct official source.
When it applies
PAYE applies when you need to run payroll, report pay and deductions to HMRC, and pay what is due.
Important deadlines
- Register as an employer when required.
- Send payroll information to HMRC on or before payday.
- Pay HMRC by the relevant PAYE payment deadline.
- Keep payroll records.
Preparation checklist
- Confirm whether this applies: This guide applies to businesses that employ staff or directors in circumstances where PAYE registration and payroll reporting are required.
- Open the relevant HMRC or Companies House account before acting.
- Collect records, dates and reference numbers that support the filing.
- Set a preparation reminder before the deadline, not only on the deadline.
- Save submission receipts, payment references and source links.
Realistic example
A first-time owner reads the PAYE guide after receiving a reminder or official message. They check whether the duty applies, note the relevant date from the official account, gather the records listed in the source guidance and save evidence after filing or paying.
This example is deliberately general because actual dates and duties can change with your company history, tax registrations, accounting period and HMRC or Companies House notices.
Common mistakes
- Paying someone before understanding payroll reporting.
- Missing the on-or-before-payday reporting requirement.
- Confusing contractor payments with employee payroll.
- Not keeping payroll evidence.
Penalties and risk
Common myths
- If no money changed hands, no filings can be due.
- Companies House and HMRC deadlines are always the same.
- A reminder calendar can replace checking the official account.
- Filing a form always means any related payment has also been made.
How it fits with other deadlines
PAYE can sit alongside VAT, Corporation Tax and Companies House responsibilities, so it helps to keep all recurring deadlines in one place.
Frequently asked questions
Do I need PAYE before hiring someone?
Is PAYE the same as Corporation Tax?
Video explainer
This guide is ready for a 2-minute explainer and 5-minute walkthrough. No video is embedded until Business Sorted has a reviewed transcript that matches the official-source guidance.
Transcript outline
- 1. What PAYE means.
- 2. Who should check whether it applies.
- 3. Which dates and records to prepare.
- 4. Which official sources to open before acting.
Related guides
Turn business deadlines into a clear task list
Business Sorted helps first-time UK business owners see what needs doing, when it is due and which official source to check before acting.