If you are thinking about taking on your first employee there are some things you need to do
- Calculate how much it will cost you – you must pay your employee at least the minimum wage. NEVER offer a net salary, ALWAYS offer a gross salary as that is what it will cost you plus 13.8% employers NI.
- Ensure the new employee can legally work in the UK
- Arrange employers liability insurance
- Provide your employee with a written statement of employment
- Register as an employer with HMRC before the first payment to your employee is due
- Calculate your employee’s net pay ensuring you deduct the correct amount of tax and NI from their pay and taking account of any previous earnings during the tax year
- Ensure you pay the tax and national insurance deductions you have taken from the employee to HMRC together with your employer’s national insurance contributions by the due date