A business was liable for the PAYE for new employees because they did not complete the “Starter Checklist” when taking on new staff.

When you take on a new employee you must notify HMRC and provide HMRC with certain information using its PAYE online service or RTI via your payroll software. The information you need will be provided on the employee’s P45 or, if they don’t have one or it’s out of date, from a starter checklist.

Please go to the following link to HMRC’s webpage regarding Starter Checklist

You would use HMRC starter checklist to obtain information you need to operate PAYE for the new employee

HRMC starter checklists

HMRC provide 2 starter checklists which are:

1. Online version
2. Printable version

So it is very important that if you take on any new staff that you follow HMRC procedures or you may face a very unwanted PAYE liability!

Get advice when taking on new staff

It is always important before you take any action that you obtain professional advice. If you have any questions in respect of the above, then please do not hesitate to contact our tax experts by sending an email to kevin@kwaccounting.com or contact us here.