Taking on new employee's

When taking on a new employee for your business, it is very important to know what your responsibilities are. You are required to undertake mandatory legal checks on the employee, as well as gather the payroll related “starter” information. You should also consider providing a contract of employment, making sure that the terms cover the minimum statutory rights, such as the right to holiday leave, rest breaks and being paid at the National Minimum/Living Wage.

Right to Work Check:
You must verify that the person you want to employ has the right to work in the UK. Visit https://www.gov.uk/legal-right-work-uk to find out what is required. Essentially, you will need to take a copy of the person’s UK passport if they have one, or other required documents if they do not. It is required that you check and confirm that this information matches any other data you have reviewed, to ensure that it is correct. This is a mandatory requirement and failure to do so can result in severe penalties.

Depending on your industry, you may also be required to request DBS checks as well.

Adding the employee to your payroll:
As well as the Right to Work Check, you must also collect personal contact information and a P45 from their previous employer. If they cannot provide a P45, you must ask them to complete the HMRC Starter Checklist, so that you can determine the correct tax code to be used for their first payslip.

There are obviously other things to consider as well, such as workplace safety, disciplinary policies, liability insurance and workplace pensions. It is important that employers understand and have records of their responsibilities. Having access to information and advice can be very important for employers. Customers of Matthews Hanton Limited’s Tax Investigation Insurance service receive free access to an “Employment and Health & Safety” helpline.