We see some confusion from time-to-time relating to the need to register as an employer and in turn operate PAYE and complete RTI submissions to HMRC. You must register as an employer if you meet the conditions requiring registration. However, not all companies need to register as an employer and you could be paying your accountant to complete the company’s monthly payroll and RTI submissions when this isn’t actually needed.
What triggers the need to register as an employer?
If your company pays you or another employee a monthly salary of £486 a month (during the 2016-17 tax year) or more then you will need to register as an employer. This is sometimes referred to as the employer registration threshold.
The above assumes that the employee(s) in question are only employed by your company and they are not receiving a pension or other taxable benefits.
What this does mean is that you can pay yourself or another employee £485 a month and then you avoid needing to register as an employer and you don’t need to pay your accountant to operate PAYE for you and you don’t need to pay your accountant to submit monthly RTI returns to HMRC.
How do I register as an employer?
If you need to register as an employer this can be done by clicking on the following link and then simply entering all of the details requested: https://www.gov.uk/register-employer
Once you have registered as an employer HMRC will post you your employer reference number and tax office reference number. You or your accountant will need these details to complete your company payroll and RTI submissions to HMRC.