Employing Young Workers and Payroll Responsibilities

Employers adding new staff to payroll, including family members, young workers and volunteers.

Clarifies employer responsibilities when hiring young employees, including payroll, National Insurance and National Minimum Wage requirements.

Failing to apply the correct payroll treatment, wage rates or employment rules can result in PAYE errors, National Minimum Wage breaches and compliance penalties.

When a new employee is added to the payroll it is the employers’ responsibility to ensure they meet the employees’ rights and deduct the correct amount of tax from their salary. This includes any employees who are family members.

Employing Children Under 16

It is possible to employ young people if they are 13 or over but there are special rules regarding how long they can work and what jobs they can undertake.

Children younger than 13 can work in certain areas such as television, theatre and modelling but their employer will need to apply for a child performance licence.

There is no National Insurance liability for children under 16 and they would only need to be included on an employer’s payroll if their total income is over their Personal Allowance.

Young Workers (Aged 16 to 17)

Young workers (aged 16 to 17) are subject to different National Minimum Wage rates. The current minimum hourly rate for this age group is £6.40.

Any payments to young workers need to be handled through the payroll. If the workers earn more than £123 a week, then the employer will also need to undertake regular PAYE tasks like making deductions.

Volunteers and Voluntary Staff

There are different rules if you take on volunteers or voluntary staff, but the employer is still responsible for health and safety and must give inductions and training in the tasks they are going to do.

Real-World Application

For example, if a family business hires a 17-year-old relative, the employer must ensure the correct National Minimum Wage rate is paid, payroll records are maintained, and PAYE is operated if earnings exceed the relevant threshold. Age does not remove payroll responsibilities.

Compliance Risk

Incorrect wage payments, failure to operate PAYE where required, or breaches of working time rules for young people can lead to financial penalties and reputational damage. Employers remain responsible for ensuring compliance even where staff are family members.

Employing Under 16-Year-Olds and Young Workers: Understanding Your Tax and Compliance Duties in London

Employing under 16-year-olds and young workers involves specific legal, payroll, and tax considerations that employers must handle carefully to remain compliant. Cigma Accounting, based in Kingston upon Thames in London, helps businesses understand PAYE obligations, National Insurance rules, and workplace restrictions, providing structured support through experienced accounting services London designed for employer compliance.

Businesses operating around Chessington and Tolworth often need clarity on age-related tax treatment, working hour restrictions, and reporting responsibilities. With physical offices across London, Cigma Accounting offers practical guidance from a knowledgeable tax accountant London to ensure young worker employment is handled correctly and without avoidable regulatory risk.