How to Register Your Company for PAYE in the UK in 2026

Register your company with HMRC as an employer, obtain an employer PAYE reference, and set up payroll software before the first pay date.

To register, appoint a company director or authorised person to act for the business. Use HMRC’s online service to create a Government Gateway ID, provide company details, and add director and accounts contact information. HMRC issues an employer PAYE reference and an Accounts Office reference within 10–15 working days. Register at least one month before the first salary payment to avoid penalties.

When must a company register for PAYE?

Register for PAYE if you employ staff, pay directors a salary, or make payments like pensions and benefits that are taxable above thresholds.

Employers must register before the first payday when they pay anyone above the National Insurance lower earnings limit or provide taxable benefits. Directors on payroll count as employees for PAYE. Small pay-as-you-earn exceptions exist only for very occasional payments below the basic threshold. Failure to register triggers fines and late-reporting penalties.

Read our articles, PAYE vs Self-Assessment: How Company Directors Pay Themselves and Do Small Business Owners Need PAYE?

What information does HMRC require to register?

Provide company registration number, PAYE contact details, accounts office address, director details, and planned payroll start date.

You must confirm the company’s legal name, registered office address, and Companies House number. HMRC will need the name, date of birth, and National Insurance number of the person acting as the employer contact. Include the company’s expected payroll frequency and first payment date. Accurate submission reduces follow-up queries and speeds issuance of the PAYE reference.

How long does PAYE registration take?

HMRC normally issues an employer PAYE reference within 10–15 working days after a successful online registration.

Delays occur if HMRC requests extra verification or if the submission lacks required details. For overseas directors or unusual structures, expect longer processing. Plan registrations at least three weeks before the first pay date. If you need a faster setup, register earlier and confirm payroll software readiness to avoid manual payroll runs.

How do you set up payroll after registration?

Choose payroll software, add employee records, calculate tax and National Insurance, and submit Real Time Information (RTI) to HMRC each pay period.

Select HMRC-recognised payroll software that files RTI submissions. Enter PAYE reference, Accounts Office reference, and employer contact. Create employee profiles using full name, date of birth, National Insurance number, tax code, and payroll start date. Run payroll to calculate income tax, employee and employer National Insurance contributions, and statutory payments. Submit Full Payment Submission (FPS) to HMRC on or before each pay date.

What are the reporting and payment obligations?

Report payroll via RTI every pay period and pay PAYE liabilities to HMRC by the monthly or quarterly deadlines, depending on the payment schedule.

Employers must send an FPS each time employees are paid. If adjustments occur, submit an Employer Payment Summary (EPS) when reclaiming statutory payments or when costs change. PAYE tax, employee National Insurance, and employer National Insurance must be paid to HMRC by the 22nd of the month after the tax month when paying electronically, or by the 19th for paper payments. Late payments incur interest and penalties.

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How do directors pay themselves through PAYE?

Directors can receive a salary through PAYE using a weekly, monthly, or annual payroll basis, with tax and National Insurance deducted at source.

Decide on a pay frequency and record the director's pay like any employee. Give directors a payslip and submit RTI. Use the appropriate tax code and National Insurance category. When directors take dividends, those payments occur outside PAYE and require separate accounting and company records. Use "PAYE vs Self-Assessment" guidance to choose tax-efficient director remuneration strategies.

What happens if you don’t register or report correctly?

HMRC levies penalties, interest, and enforcement actions for late registration, late RTI filing, and unpaid PAYE; repeated failures increase fines.

Penalties scale with the size and duration of non-compliance. For instance, failing to send an FPS on time can trigger automatic penalties based on employer size. Late PAYE payments accrue interest daily and face fixed penalty charges. HMRC may issue demands, apply liabilities to directors, or start legal recovery. Keep payroll records for at least three years and reconcile PAYE payments monthly.

What practical steps ensure smooth PAYE compliance?

Register with HMRC early, use compliant payroll software, keep accurate employee records, and reconcile PAYE payments monthly.

Set internal payroll dates and approval workflows. Verify employee identity and National Insurance numbers before first pay. Automate RTI submissions and bank payments where possible. Schedule a monthly reconciliation of payroll to the company bank account and accounts ledgers. Train staff who handle payroll on RTI deadlines and statutory pay rules.

How does My Company Registration help with PAYE setup?

My Company Registration registers companies for PAYE, configures payroll, and ensures RTI-ready submissions to HMRC.

The service manages employer registration, obtains PAYE references, and configures compliant payroll software. It sets up employee records, runs initial payrolls, and files the first FPS. My Company Registration also guides director pay structures and aligns payroll processes with company accounts. This reduces setup errors and shortens the time to legal PAYE compliance.

Registering for PAYE is a legal duty when you employ staff or pay directors' taxable salaries. Register the company before the first payroll, use HMRC-recognised payroll software, and submit RTI on each pay date. My Company Registration supports full PAYE setup and ongoing compliance to reduce errors and penalties.

Frequently Asked Questions

How do I register my company for PAYE with HMRC?

Register your company for PAYE online using HMRC’s employer registration service or appoint an agent. My Company Registration can prepare the required details—company number, director info, and planned payroll start date—to complete the HMRC submission and obtain your employer PAYE reference.

When should a company register for PAYE?

Register before the first payday if you employ staff, pay a director a salary above the National Insurance threshold, or make taxable benefits or pension payments. My Company Registration advises clients to register at least three weeks before the first salary payment to avoid penalties.

What documents and information are needed to register my company for PAYE?

Provide the company registration number, registered office address, director names, National Insurance numbers, employer contact details, and planned payroll start date. My Company Registration verifies these details to reduce HMRC follow-ups and speed issuance of the PAYE reference.

How long does PAYE registration take for a new company?

HMRC typically issues an employer PAYE reference within 10–15 working days after successful registration, though checks can extend this time. My Company Registration recommends registering early and confirming payroll software to ensure readiness by the first pay date.

Can directors be paid through PAYE and still take dividends?

Yes. Directors can receive a salary via PAYE with tax and National Insurance deducted at source, and also receive dividends separately from company profits. My Company Registration helps set up payroll correctly and advises on record-keeping for PAYE and dividend payments.