Quick Payroll Setup for New Businesses in the UK

Starting a new business comes with a long to-do list and payroll is often one of the most confusing and time-consuming tasks to tackle. But here’s the good news: getting payroll up and running doesn’t have to be complicated or slow. With the right steps (and possibly the right partner), you can get a quick payroll setup for your new business and stay compliant from day one.

Whether you’ve just registered your company or you're hiring your first employee, this guide walks you through how to set up payroll quickly, legally, and with minimal hassle.

Step 1: Register as an Employer with HMRC

Before anything else, you need to let HMRC know that you're hiring staff or paying yourself through PAYE (Pay As You Earn). This is a legal requirement, and it applies even if you’re the only employee (as a sole director).

✅ Go to the GOV.UK website and register as an employer.⏱ It typically takes up to 5 working days to get your PAYE reference number so do this ASAP.

Step 2: Gather Your Employee Information

Once you're registered, the next step is collecting the key details for each employee or director being paid:

• Full name, address, and National Insurance number

• Date of birth and tax code (use a P45 if available)

• Start date and salary or hourly rate

• Bank details for payments

• Any student loan, benefits, or pension info

This step is essential for ensuring accurate calculations and legal compliance.

Step 3: Choose the Right Payroll Setup Option

You have three main choices for getting payroll going:

✅ 1. Use Payroll Software

Great for businesses comfortable handling payroll themselves. Some popular options include BrightPay, QuickBooks Payroll, and FreeAgent.

✅ 2. Use HMRC’s Basic PAYE Tools

Ideal for micro-businesses with one or two employees, but limited in features.

✅ 3. Outsource Your Payroll

The fastest and most stress-free option. With outsourcing, all setup and ongoing management are handled for you including HMRC submissions, payslips, pensions, and more.

👉 This is the easiest route if you’re short on time or unsure about the compliance side.

Step 4: Set Up PAYE and Payroll Calendar

Once you’ve picked your system or provider:

• Enter your PAYE reference and accounts office number

• Set your pay frequency (weekly, monthly, etc.)

• Choose your payroll calendar and submission schedule

• Set up pension contributions if needed (auto-enrolment rules apply to eligible employees)

Don’t forget to factor in RTI (Real Time Information) you'll need to report payments to HMRC on or before payday.

Step 5: Process Payroll and Submit to HMRC

Once everything’s set:

• Run your first payroll cycle

• Generate payslips and send them to employees

• Submit a Full Payment Submission (FPS) to HMRC

• Pay HMRC for the tax, National Insurance, and pension contributions by the 22nd of the month

If you’re outsourcing, all of this is done for you.

Why Quick Payroll Setup for New Businesses Matters

Time is money and new business owners can’t afford to waste either. Delays or mistakes with payroll can lead to HMRC penalties, unhappy employees, and unnecessary admin. That’s why a quick payroll setup for new businesses is critical it keeps your operations smooth, your staff paid, and your focus where it should be: growing your business.

Want to Skip the Hassle?

We specialise in helping new UK businesses set up payroll quickly, easily, and affordably no jargon, no stress. Whether you’re hiring your first employee or just need to pay yourself as a director, we’ll get everything in place and keep you compliant from day one.

💬 Ready to get started? Get in touch today for a same-day payroll setup and peace of mind.