You must register as an employer with HMRC as soon as you employ somebody for the first time. Once you become an Employer you have the responsibility to collect Tax and National Insurance from your employees wages and pay these over to HMRC each month.
It is important to calculate your employees pay, National Insurance and Tax correctly and file this information with HMRC every time you pay each employee. Failure to inform HMRC of payments to employees can incur penalties for yourself as an employer.
If you are a small employer it can be more cost effective to outsource to a Bookkeeper experienced in running a Payroll who can ensure you are compliant in your obligations with HMRC. K H Bookkeeping Services works with you to provide a tailor made payroll service to take the hassle out of paying your employees.