Taking on your first employee is an exciting step forward for your business. It often marks real growth - but it also brings a new set of responsibilities to get right from day one.
Before you hire, it’s worth putting the right foundations in place...
Getting set up properly
- Register as an employer with HMRC ahead of your first payday.
- Set up a payroll system that can operate PAYE and submit Real Time Information to HMRC.
- Check whether workplace pension auto-enrolment applies and understand what’s required.
(This is where many businesses feel the pressure - payroll needs to run accurately, on time, and in line with HMRC rules. We support many clients by taking this off their hands entirely, so they can focus on running their business.)
Looking after your people
- Put written contracts in place covering pay, hours, holiday, sickness and notice periods.
- Ensure you are meeting National Minimum Wage and National Living Wage requirements.
- Confirm every employee’s right to work in the UK and retain the appropriate documentation.
Understanding the true cost
- Budget for more than just salary - include National Insurance, pensions, holiday pay, training and equipment.
- Plan how wages and expenses will be paid and make sure your cash flow supports this on a monthly basis.
Protecting your business
- Arrange employers’ liability insurance (this is usually a legal requirement).
- Put simple, clear processes in place for sickness, holidays, disciplinary matters and record keeping.
- Make sure employee data is stored securely and in line with UK data protection rules.
Planning for growth
- Consider any health and safety requirements, particularly if staff will use equipment or vehicles.
- Review whether additional space, systems or software will be needed as your team grows.
- Think about how you will onboard and support new employees so they can settle in quickly and add value.
- Keep pricing and profitability under review, as taking on staff increases your fixed costs.
Taking the time to prepare properly makes a real difference - it helps you stay compliant, avoid unnecessary admin headaches, and gives your business the best platform to grow with confidence.
If you’d like a sounding board as you go through this - or would prefer support with payroll, pensions and ongoing compliance - we’re here to help. Call us on 01380 723692 or email us here.