Step-by-Step Guide to Employing Someone in the UK

Business owners, HR managers, and company directors in the UK who are planning to hire new staff and need to comply with employment regulations. Provides a clear step-by-step guide to hiring employees in line with HMRC and UK employment rules, helping businesses avoid compliance issues and penalties. Failing to follow proper procedures when employing someone can lead to legal disputes, fines, and mismanagement of payroll and taxes.

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Step 1: Check Your Business is Ready to Employ Staff

Determine whether you need a full-time or part-time employee and ensure your business infrastructure supports taking on staff.

Step 2: Recruit Someone

Advertise the role and interview candidates.
Check that applicants have the right to work in the UK.
Apply for a DBS check if required (for roles involving vulnerable people or security).

Step 3: Workplace Pension

Check if new employees need to be enrolled in a workplace pension scheme, as required by UK law.

Step 4: Agree Contract and Salary

Provide written details of the job, including terms and conditions.
Give a written statement of employment if the employee will work more than 1 month.

Step 5: Tell HMRC About Your New Employee

You can notify HMRC up to 4 weeks before paying your staff. Directors employing themselves in a limited company must also complete this process. For professional guidance on payroll, tax obligations, and employment compliance, consider consulting an AI accounting firm Wimbledon.

Plan Your Employee Hiring Process With Expert Help

Managing the recruitment process can be challenging, from drafting employment contracts to setting up payroll and ensuring compliance with employment law. Cigma Accounting helps businesses across Farringdon, Shoreditch, and Clerkenwell navigate these challenges efficiently, providing guidance from a trusted accounting services London to keep your hiring process smooth and compliant.

Whether you are onboarding your first employee or expanding your team, professional support ensures accurate payroll management, legal compliance, and effective workforce planning. Cigma Accounting offers tailored solutions for businesses in London, with physical offices across London, helping you implement best practices with a reliable tax accountant in London.

Planning to Employ Your First Employee?

Hiring staff involves legal obligations, payroll responsibilities, and tax compliance. Our advisers guide small business owners step by step through the employment process, ensuring all HMRC requirements are met and staff are onboarded efficiently.

Trusted guidance from London-based accountants, focused on accuracy, clarity, and compliance.

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CIGMA Accounting

CIGMA Accounting Ltd is a forward-thinking accounting and tax firm based in London, dedicated to delivering high-quality compliance, tax planning, and business advisory services to entrepreneurs, landlords, and growing SMEs. With offices in Wimbledon and Farringdon, we combine local expertise with a tech-driven approach to simplify accounting. Our services include corporation tax filing, VAT compliance, HMRC investigation support, R&D tax credit claims, capital allowances optimisation, and bookkeeping automation. What sets CIGMA apart is our ability to blend traditional accounting rigour with AI-powered systems that reduce errors, save time, and provide real-time financial insights. Our team ensures that every client - from startups to high-net-worth individuals - receives a bespoke solution aligned with their growth goals. Whether you need strategic tax planning, help with HMRC disclosures, or a full outsourced finance function, CIGMA Accounting delivers clarity, compliance, and confidence.