New employee requirements

When you employ new starters and want to put them onto payroll you will need to inform HMRC of their details such as:

• Tax code
• National Insurance number
• Previous employment pay to date
• Previous tax paid to date
• Determine if student loan deductions are required
• Determine their legal right to work in the UK

All of this information will be available on the employees P45 from their previous employer, if they do not have this they will then need to complete HMRC’s Starter Checklist which can be accessed by clicking here.

Alternatively you can click here to download the print copy HMRC Starter Checklist, though we would recommend having your employee fill out the above online form which can be saved and shared once fully completed.

You must keep your employee information recorded for the current and previous 3 tax years, in case HMRC make any enquiries.

You will need to assign your employee a unique payroll ID and using the above information submit a Full Payment Submission (FPS) to HMRC when you first pay your new employee.

MTD provides a fully-managed payroll solution who can take care of all of the above for you, saving you time, freeing up resources and allowing you to focus on other areas of importance for your business.