Register as an employer with HMRC before the first payday – you'll need your company details and expected payroll dates.

Obtain correct tax codes for each employee from HMRC via their P45 or starter checklist, and update them when changes occur.

Calculate income tax deductions based on tax codes and pay frequency, using HMRC's tax tables or payroll software.

Deduct National Insurance contributions at the appropriate rates for employees and employers, which vary by earnings level.

Account for student loan repayments if employees have Plan 1, 2, or 4 loans, deducting the correct percentage from their pay.

Submit Full Payment Submissions (FPS) to HMRC each time you pay employees, reporting all deductions and payments.

Pay deducted amounts to HMRC by the 22nd of each month (or 19th for postal payments) to avoid interest charges.

Provide employees with detailed payslips showing gross pay, all deductions, and net pay, as required by law.

Report expenses and benefits through P11D forms annually if you provide perks like company cars or private medical insurance.

Keep PAYE records for at least three years after the tax year ends, including payslips, reports, and correspondence with HMRC.