New employers check list

by Aitch, posted in Business Support

Taking on your first employee can help a business grow, although it also brings a number of important responsibilities.

Before employing staff for the first time, business owners should consider the following points:

  • Register as an employer with HM Revenue and Customs before the first payday.
  • Set up a payroll system capable of operating PAYE and filing Real Time Information reports with HMRC.
  • Check whether workplace pension auto-enrolment rules apply and ensure that pension responsibilities are understood.
  • Prepare written contracts of employment setting out pay, hours, holiday entitlement, sickness arrangements and notice periods.
  • Make sure you are aware of, and comply with, the National Living Wage and National Minimum Wage regulations.
  • Confirm that employees have the legal right to work in the UK and retain copies of supporting documents.
  • Arrange employers’ liability insurance, which is normally a legal requirement for businesses employing staff.
  • Budget for the full cost of employment, not just salary. Employers should also allow for National Insurance, pension contributions, holiday pay, training costs and equipment.
  • Decide how wages and expenses will be paid and ensure that sufficient business cash flow is available each month.
  • Put in place procedures covering sickness reporting, holidays, disciplinary matters and employee records.
  • Consider whether health and safety requirements apply to the workplace, particularly where employees will use machinery, vehicles or specialist equipment.
  • Review whether additional software, office space, telephones or IT systems will be needed as staffing levels increase.
  • Ensure that employee data is handled securely and in line with UK data protection requirements.
  • Plan induction and training procedures to help new employees settle into the business quickly and productively.
  • Review pricing and profitability regularly, as employing staff often increases fixed monthly overheads.

Careful preparation before employing staff can help reduce administrative problems, improve compliance and support the long-term growth of the business. If you need help integrating any of these points, please call, we can assist you.

Source:Other | 17-05-2026
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Aitch
I'm Aitch, the Founder and CEO of CIGMA Accounting Ltd. As a Chartered Management Accountant and as a CIMA member, I've spent more than 16 years helping businesses, entrepreneurs, landlords, and individuals with tax planning, accounting, and HMRC compliance. As a chartered accountant in London, I'm passionate about making complex tax matters easier to understand and helping clients make confident financial decisions. Over the years, I've advised start-ups, SMEs, established companies, and high-net-worth individuals across a wide range of tax and accounting matters. My expertise includes Corporation Tax, Self-Assessment, Capital Gains Tax, Inheritance Tax planning, R&D tax relief, capital allowances, international tax, and resolving complex HMRC compliance issues. Whether clients need a business accountant, tax accountant, or strategic tax advisor, my focus is always on delivering practical advice that creates long-term value. One of my specialist areas is Making Tax Digital (MTD). I've worked extensively with businesses preparing HMRC's digital reporting requirements, helping them move to cloud accounting, improve financial processes, and adopt technology that makes compliance more efficient. I regularly speak at Making Tax Digital roadshows, industry events, and educational sessions in collaboration with Zoho Books, sharing practical insights into digital accounting, tax legislation, and the future of the profession. Many business owners looking for the best accounting firm in London are not simply searching for an accountant they're looking for trusted advice, responsive support, and long-term value. That's the approach I've taken in building CIGMA Accounting. My team and I work closely with businesses across London and the UK, providing accounting services, tax advisory, bookkeeping, payroll, VAT, company accounts, and strategic tax planning tailored to each client's goals. Through this website, I share practical guidance on UK taxation, Making Tax Digital, HMRC updates, Corporation Tax, Self-Assessment, and business finance. My aim is to provide reliable, straightforward information that helps business owners understand changing regulations, reduce compliance risks, and make informed financial decisions with confidence.
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