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Registering as an Employer or CIS Contractor

If you are employing staff or engaging subcontractors for construction work, you will normally need to register with HM Revenue & Customs (HMRC).



Employing staff


You must registe#86C6E5r as an employer before your first payday so that HMRC can issue your employer PAYE reference number. This applies even if you are the sole director of a limited company and the company employs only you.

You can register up to two months before you intend to start paying yourself or your employees.


Most limited companies with between one and nine directors can register online with HMRC. If you have already begun an application, you can return to the service and continue it.


Engaging construction subcontractors


If you pay subcontractors to carry out construction work, you must usually register as a contractor under the Construction Industry Scheme (CIS) before taking on your first subcontractor.


You must also:


  • Check whether the individual should be treated as an employee rather than a subcontractor

  • Verify each subcontractor with HMRC

  • Make any required CIS deductions from their payments

  • Submit monthly CIS returns and maintain appropriate records


Find out more about your responsibilities as a CIS contractor.


Paying someone before receiving your PAYE reference


If you have to pay an employee before your PAYE reference arrives, you should still:


  1. Run payroll as normal

  2. Store the Full Payment Submission (FPS) securely

  3. Submit the FPS as soon as possible after receiving your PAYE reference, using the appropriate late-reporting reason


HMRC advises using late-reporting reason code G where the delay occurred because your PAYE reference had not yet been received.


Register before payments begin


Registering promptly helps ensure that PAYE or CIS is operated correctly from the outset and reduces the risk of late submissions, penalties or avoidable administrative problems.


Need help registering for PAYE or CIS? Contact us to discuss your obligations and get your payroll set up correctly.

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