{"id":3776,"date":"2022-06-08T05:05:20","date_gmt":"2022-06-08T04:05:20","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=3776"},"modified":"2025-02-05T01:25:00","modified_gmt":"2025-02-05T01:25:00","slug":"employing-staff","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/employment\/employing-staff\/","title":{"rendered":"Key Steps in Preparing Your Business for Employing Staff in the UK"},"content":{"rendered":"<p><span style=\"font-weight: 400\">Deciding that your business is at the stage where you need to employ staff is an exciting and huge step. However, there are government guidelines you need to be aware of and follow. If you are not aware of these, you may make mistakes and find the task of employing staff a stressful one. Mistakes can cost time and money, so you should avoid these where you can. You may also receive a fine if you do not carry out requirements such as not setting up your employees&#8217; workplace pension in time or not having employers\u2019 liability insurance in place.\u00a0<\/span><span style=\"font-weight: 400\">This article will explain the key steps in preparing your business for employing staff in England and Wales to help you ensure you do it correctly and avoid unnecessary mistakes.<\/span><\/p>\n<h2><span style=\"font-weight: 400\">Think About What Sort of Employees You Need<\/span><\/h2>\n<p><span style=\"font-weight: 400\">When considering taking on new employees, you need to decide what type of employees you are looking for. This requires you to think about their hours and <\/span><a href=\"https:\/\/legalvision.co.uk\/employment\/employment-statuses\/\"><span style=\"font-weight: 400\">employment status<\/span><\/a><span style=\"font-weight: 400\">. Not all <a href=\"_wp_link_placeholder\" data-wplink-edit=\"true\">staff<\/a> are employees &#8211; you may choose workers or self-contractors. Their status will determine their <\/span><a href=\"https:\/\/legalvision.co.uk\/employment\/employment-rights\/\"><span style=\"font-weight: 400\">rights and responsibilities<\/span><\/a><span style=\"font-weight: 400\">. You may require a few staff members to begin with, or you may need an entire team from the outset.<\/span><\/p>\n<h2><span style=\"font-weight: 400\">Can You Afford to Take on Employees?<\/span><\/h2>\n<p><span style=\"font-weight: 400\">As part of preparing your business for employing staff, you need to decide if you can afford to. Employing staff means committing to wages, so you need to be sure you are in a position to commit. Paying employees\u2019 wages is not just about the salary you pay but the legal entitlements that come with it, so you need to be aware of:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">the <\/span><a href=\"https:\/\/legalvision.co.uk\/employment\/minimum-wage-vs-living-wage\/\"><span style=\"font-weight: 400\">minimum wage<\/span><\/a><span style=\"font-weight: 400\">, as you are legally obliged to pay your employees this;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">the national insurance you will be required to pay on behalf of your employees;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">what sick pay your employees will be due;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">the amount you will need to contribute towards their pensions; and\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">the <\/span><a href=\"https:\/\/legalvision.co.uk\/employment\/responsibilities-pregnant-employees\/\"><span style=\"font-weight: 400\">maternity and paternity leave<\/span><\/a><span style=\"font-weight: 400\"> pay you will need to pay your employees.<\/span><\/li>\n<\/ul>\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+448081968584\" class=\"not-prose\">0808 196 8584<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will contact you within one business day.\n        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Consequently, you should:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">assure staff that discrimination does not occur in your workplace as it is illegal to discriminate against a member of staff based on particular protected characteristics such as, for example, race or disability;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">ensure that staff can access your workplace, which requires you to think about how they could if they have a disability or a health condition;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">think about health and safety as you have a legal duty to ensure the health and safety of your staff;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">ensure fire safety in your workplace; and\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">think about how you will store your employees&#8217; information and data as there are legal requirements under data protection law.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400\">Register Yourself as an Employer<\/span><\/h2>\n<p><span style=\"font-weight: 400\">As an employer, you will need to pay tax and national insurance on your employees&#8217; behalf. Therefore, <\/span><a href=\"https:\/\/www.gov.uk\/topic\/dealing-with-hmrc\/paying-hmrc\"><span style=\"font-weight: 400\">HMRC<\/span><\/a><span style=\"font-weight: 400\"> needs to be aware that you are now an employer. This requires you to register with them to set up PAYE, which you use when paying your staff. This means that you will need to think about whether you will run your payroll yourself or if someone will work on your behalf. If you are running it yourself, you will need to choose payroll software.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Additionally, you will need to give yourself four weeks for the registration process with HMRC before you are due to pay your first wage payment. If your employees earn \u00a3112 per week or less, you are not required to register with HMRC.<\/span><\/p>\n<h2><span style=\"font-weight: 400\">Understand Workplace Pensions<\/span><\/h2>\n<p><span style=\"font-weight: 400\">As an employer, you have pension responsibilities towards your staff, and you should understand what these are when preparing your business to employ staff. Some of your staff may need to have a workplace pension set up by you, which you will have to pay into. This applies where your employee is eligible to work in the UK, aged between 22 years to the State Pension Age, and earns over \u00a310,000 per annum.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400\">Consider Employer&#8217;s Liability Insurance<\/span><\/h2>\n<p><span style=\"font-weight: 400\">As soon as you employ staff, you must ensure you have employers\u2019 liability insurance. This will allow you to pay compensation should one of your employees suffer an injury or an illness due to their work with you. The minimum amount on your policy must be \u00a35 million, and you must get your insurance from an authorised insurer.<\/span><\/p>\n<h2><span style=\"font-weight: 400\">Recruit and Employ Staff<\/span><\/h2>\n<p><span style=\"font-weight: 400\">Once you have prepared your business to employ staff, you are ready to recruit staff to work for you. Aside from the actual recruitment process, this involves, for example:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">checking eligibility to work in the UK;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">carrying out a Disclosure and Barring Service check if necessary, which will depend on the nature of your business;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">creating an <\/span><a href=\"https:\/\/legalvision.co.uk\/employment\/importance-employment-contracts\/\"><span style=\"font-weight: 400\">employment contract<\/span><\/a><span style=\"font-weight: 400\">;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">passing your employees a written statement of employment if the employee will be with you for more than one month as this is a legal requirement; and\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">deciding upon a salary.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400\">Key Takeaways<\/span><\/h2>\n<p><span style=\"font-weight: 400\">If you are ready to become an employer, you need to take specific steps as preparation for this. Certain steps are legally necessary, such as registering with HMRC and the requirement to obtain employers\u2019 liability insurance. Other steps you need to take will inform you of your legal requirements concerning your staff, such as the minimum wage and other responsibilities associated with employing staff, like national insurance contributions and sick pay. Not carrying out the correct steps can cause problems for you in the overall process. For example, registering with HMRC late and not paying your staff on time can lead to a hefty fine.<\/span><\/p>\n<p><span style=\"font-weight: 400\">If you need help understanding how to prepare your business for employing staff in the UK, our experienced <\/span><a href=\"https:\/\/legalvision.co.uk\/employment-lawyers-lp\/\"><span style=\"font-weight: 400\">employment lawyers<\/span><\/a><span style=\"font-weight: 400\"> can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents for a low monthly fee. So call us today on <a href=\"tel:+448081968584\" class=\"AVANSERnumber dynamic-number\">0808 196 8584<\/a> or visit our <\/span><a href=\"https:\/\/legalvision.co.uk\/membership\"><span style=\"font-weight: 400\">membership page<\/span><\/a><span style=\"font-weight: 400\">.<\/span><\/p>\n<h2><span style=\"font-weight: 400\">Frequently Asked Questions<\/span><\/h2>\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1654660898895\"><strong class=\"schema-faq-question\"><strong>Why do I need to prepare for employing staff before employing them?<\/strong><\/strong> <p class=\"schema-faq-answer\">As a potential employer, you need to prepare your business before employing staff to ensure that you are legally ready to do so. This means having systems in place such as PAYE to pay your staff and having employer&#8217;s liability insurance should you need to pay them compensation.\u00a0<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1654660910163\"><strong class=\"schema-faq-question\"><strong>What are the first steps in preparing my business to employ staff?<\/strong><\/strong> <p class=\"schema-faq-answer\">Some of the first steps in preparing your business to employ staff are thinking about what type of employees you may require, such as full time or part-time. Next, assess whether or not you can afford to take employees on.<\/p> <\/div> <\/div>\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"9eb4f72322\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/3776\" \/>            <input value=\"https:\/\/legalvision.co.uk\/employment\/employing-staff\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"Key Steps in Preparing Your Business for Employing Staff in the UK\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Deciding that your business is at the stage where you need to employ staff is an exciting and huge step. However, there are government guidelines you need to be aware of and follow. If you are not aware of these, you may make mistakes and find the task of employing staff a stressful one. Mistakes<a href=\"https:\/\/legalvision.co.uk\/employment\/employing-staff\/\">Continue reading <span class=\"sr-only\">&#8220;Key Steps in Preparing Your Business for Employing Staff in the UK&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13326,"featured_media":3251,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"1402,2180,1977,3377,874,2273","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[35],"tags":[20,408,783,784,785],"class_list":["post-3776","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employment","tag-small-business","tag-employment-contracts","tag-employing-staff","tag-new-staff","tag-recruitment"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Preparing Your Business for Employing Staff | LegalVision UK<\/title>\n<meta name=\"description\" content=\"Employing staff for the first time is an exciting and huge step for any business. 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This article explores key considerations for your business.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/legalvision.co.uk\/employment\/employing-staff\/\" \/>\n<meta property=\"og:site_name\" content=\"LegalVision UK\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/LegalVision\" \/>\n<meta property=\"article:published_time\" content=\"2022-06-08T04:05:20+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-02-05T01:25:00+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2022\/05\/24122301\/business-image-0522192.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"899\" \/>\n\t<meta property=\"og:image:height\" content=\"599\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Clare Farmer\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@LegalVision_law\" \/>\n<meta name=\"twitter:site\" content=\"@LegalVision_law\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Clare Farmer\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/legalvision.co.uk\/employment\/employing-staff\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/legalvision.co.uk\/employment\/employing-staff\/\"},\"author\":{\"name\":\"Clare Farmer\",\"@id\":\"https:\/\/legalvision.co.uk\/#\/schema\/person\/46fdb392af527f38f90649480343e732\"},\"headline\":\"Key Steps in Preparing Your Business for Employing Staff in the UK\",\"datePublished\":\"2022-06-08T04:05:20+00:00\",\"dateModified\":\"2025-02-05T01:25:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/legalvision.co.uk\/employment\/employing-staff\/\"},\"wordCount\":1121,\"image\":{\"@id\":\"https:\/\/legalvision.co.uk\/employment\/employing-staff\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2022\/05\/24122301\/business-image-0522192.jpg\",\"keywords\":[\"small business\",\"employment contracts\",\"employing staff\",\"new staff\",\"recruitment\"],\"articleSection\":[\"Employment Articles\"],\"inLanguage\":\"en-GB\"},{\"@type\":[\"WebPage\",\"FAQPage\"],\"@id\":\"https:\/\/legalvision.co.uk\/employment\/employing-staff\/\",\"url\":\"https:\/\/legalvision.co.uk\/employment\/employing-staff\/\",\"name\":\"Preparing Your Business for Employing Staff | LegalVision UK\",\"isPartOf\":{\"@id\":\"https:\/\/legalvision.co.uk\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/legalvision.co.uk\/employment\/employing-staff\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/legalvision.co.uk\/employment\/employing-staff\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2022\/05\/24122301\/business-image-0522192.jpg\",\"datePublished\":\"2022-06-08T04:05:20+00:00\",\"dateModified\":\"2025-02-05T01:25:00+00:00\",\"author\":{\"@id\":\"https:\/\/legalvision.co.uk\/#\/schema\/person\/46fdb392af527f38f90649480343e732\"},\"description\":\"Employing staff for the first time is an exciting and huge step for any business. 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Prior to her freelance writing work, Clare worked for UK central government in policy and communication roles. She has also run her own businesses where she founded a magazine and was editor-in-chief. She is currently studying part-time towards a PhD predominantly in international public law. Qualifications: PhD, Human Rights Law (underway), University of Bedfordshire, Post graduate diploma, Law, Middlesex University.","sameAs":["https:\/\/www.linkedin.com\/in\/ms-clare-susannah-f-4a243545\/"],"url":"https:\/\/legalvision.co.uk\/author\/clarefarmer\/"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/employment\/employing-staff\/#faq-question-1654660898895","name":"Why do I need to prepare for employing staff before employing them?","acceptedAnswer":{"@type":"Answer","text":"As a potential employer, you need to prepare your business before employing staff to ensure that you are legally ready to do so. This means having systems in place such as PAYE to pay your staff and having employer's liability insurance should you need to pay them compensation.\u00a0","inLanguage":"en-GB"},"inLanguage":"en-GB"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/employment\/employing-staff\/#faq-question-1654660910163","name":"What are the first steps in preparing my business to employ staff?","acceptedAnswer":{"@type":"Answer","text":"Some of the first steps in preparing your business to employ staff are thinking about what type of employees you may require, such as full time or part-time. Next, assess whether or not you can afford to take employees on.","inLanguage":"en-GB"},"inLanguage":"en-GB"}]}},"_links":{"self":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/3776","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/users\/13326"}],"replies":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/comments?post=3776"}],"version-history":[{"count":6,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/3776\/revisions"}],"predecessor-version":[{"id":192702,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/3776\/revisions\/192702"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/media\/3251"}],"wp:attachment":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/media?parent=3776"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/categories?post=3776"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/tags?post=3776"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}