PAYE for Employers: How to Set Up and Run Payroll in the UK

Employment & Payroll · 10 min read · Updated 2026-03-24

A step-by-step guide to setting up PAYE as an employer in the UK, covering registration with HMRC, running payroll, reporting obligations, and paying HMRC on time.

Written by Krishna, Founder & HMRC-registered tax agent at TaxRoot.

Do I need to register for PAYE if I am a limited company director?

Yes, if you pay yourself a salary from your limited company, even a small one, you should register for PAYE. The only exception is if your total pay is below £123 per week and you have no other employment. Most directors pay themselves a salary at or around the NI…

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