Calculating PAYE

If you're a new employer, you must register with Her Majesty's Revenue & Customs (HMRC). Just call their helpline on 0845 60 70 143.

You'll need to complete and return the registration form (CWF3); HMRC will then supply their guidelines and a starter pack on PAYE, National Insurance, Statutory Sick Pay, Statutory Maternity Pay, Statutory Paternity Pay and Statutory Adoption Pay. They will also provide tables for calculating the tax and NI payable on employees' earnings.

Every employee must have a tax code and a National Insurance number, both of which will on the P45 form, from their previous employer. If they don't know their National Insurance number, HMRC can supply it. In the absence of a tax code, you will need to use an emergency code until the employee can be assigned the correct code.

Further Reading

• Calculating PAYE
• Employees on the payroll
• Paying the Inland Revenue
• PAYE Forms
• Payslips
• Statutory pay
• Working Tax credits
• Student loans