How to Employ Someone as a Small Business in the UK

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Hiring your first employee is an exciting step for your small business. At Hiclass Accounting, we’re here to guide you through the process and make sure everything is done properly – from payroll to pensions.

Whether you’re growing quickly or just need an extra pair of hands, this page will help you understand how to employ someone in the UK as a small business owner.

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1. Make Sure You’re Ready to Employ

Before you start advertising a job, ask yourself:

• Can your business afford to pay wages, taxes and pensions?

• Do you have enough work to give someone regular hours?

• Are you ready for the extra responsibility?

If the answer is yes, it’s time to start the process.

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2. Register as an Employer

As soon as you take on a member of staff, you need to register as an employer with HMRC. This can be done online and should be completed before the first payday.

You’ll also need to decide whether they’re an employee or self-employed, as this affects your responsibilities. (Not sure? We can help you work it out.)

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3. Set Up Payroll

Once registered, you’ll need to:

• Run a PAYE payroll system

• Deduct Income Tax and National Insurance

• Send reports to HMRC every time you pay your employee

Payroll can get complex – we offer UK payroll services for small businesses, so you can focus on running your business.

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4. Check the Right to Work

It’s a legal requirement to check your employee has the right to work in the UK. You’ll need to see their passport or other official documents and keep copies.

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5. Provide a Written Statement

By law, you must give your employee a written statement of employment if they’re working for you for more than a month. This should include:

• Job title and description

• Pay and hours

• Holiday entitlement

• Notice period

• Any benefits

We can help you get this sorted so it meets all legal requirements.

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6. Pay the National Minimum Wage

Make sure you’re paying at least the National Minimum Wage or National Living Wage, depending on your employee’s age. This changes every April – we’ll keep you up to date.

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7. Set Up a Pension Scheme

If your employee earns over a certain amount, you must:

• Set up a workplace pension scheme

• Enrol them automatically

• Make contributions

We can handle this for you, or guide you through the steps if you’d prefer to do it yourself.

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Need Help Employing Someone?

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We know it can feel overwhelming, especially when you’re doing it for the first time. At Hiclass Accounting, we make employing someone easy and stress-free.

We offer:

• Expert payroll setup and ongoing support

• Help with HMRC and pension duties

• Friendly advice, tailored for small businesses

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Get in touch today to find out how we can support you.

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Common Questions About Employing Staff in the UK

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Do I need a contract to employ someone?
Yes, a written statement of employment is required by law if they’re working for more than a month.

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How much does it cost to employ someone?

Aside from wages, you’ll need to pay employer National Insurance and possibly contribute to their pension. We can help you budget.

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Can I employ someone part-time?
Yes – part-time staff have the same rights as full-time employees.

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Hiclass Accounting – Here to help small businesses grow the right way.