Register for PAYE with HMRC before your first employee payment – you can do this online via HMRC's website.

Calculate Income Tax using the employee's tax code, which determines their personal allowance and tax-free earnings.

Deduct National Insurance contributions based on employee earnings and thresholds – rates vary for employees and employers.

Use Real Time Information (RTI) to report all payments to HMRC – submit Full Payment Submissions (FPS) each payday.

File Employer Payment Summaries (EPS) if you have no payments in a period or need to claim reductions.

Pay HMRC the tax and NI you've collected by the 22nd of each month – use electronic payments for faster processing.

Issue P60s to employees annually by 31 May – this summarises their total pay and deductions for the tax year.

Handle benefits in kind through PAYE, such as company cars or health insurance, by reporting them on P11D forms.

Manage student loan deductions if applicable – check with HMRC for the correct rates and thresholds.

Keep detailed records for at least three years, including payroll data, tax codes, and payment evidence, in case HMRC audits you.