Taking on your first employee is a major milestone for any business. Whether you’re overwhelmed with work, expanding your services, or just need a reliable second pair of hands—it’s a big step that comes with both exciting opportunities and important responsibilities.
If you’re based in the UK and getting ready to hire your first team member, here’s a straightforward guide to help you do it right, stay compliant, and set your new hire up for success.
1. Make Sure You’re Ready to Hire
Before you begin the process, ask yourself:
- Is there enough consistent work to justify a hire?
- Can your business afford the salary and associated costs?
- Are you ready to manage someone and delegate effectively?
Hiring too soon can be as challenging as hiring too late, so it’s worth doing the maths and making a realistic plan.
2. Register as an Employer with HMRC
You must register as an employer with HM Revenue and Customs (HMRC) before the first payday. This applies even if you’re only employing one person.
- You can register up to 4 weeks before your first payday.
- Registration can be done online via the GOV.UK website.
3. Understand Your Legal Responsibilities
Employing someone in the UK comes with legal obligations, including:
✅ Right to Work Checks
You must check that your new hire is legally allowed to work in the UK. This involves verifying ID and immigration status.
✅ Employment Contract
By law, employees must receive a “written statement of employment particulars” by the first day of work. This outlines job title, pay, working hours, notice period, etc.
✅ Minimum Wage Compliance
Ensure you pay at least the National Minimum Wage or National Living Wage, depending on the employee’s age.
✅ Pension Auto-Enrolment
If your new hire is aged between 22 and State Pension age and earns over £10,000 a year, you’ll need to enrol them into a workplace pension scheme.
✅ Employer’s Liability Insurance
This is a legal requirement as soon as you become an employer. It protects you in case an employee claims compensation due to illness or injury caused by their work.
4. Decide on the Job Role and Pay
Write a clear job description with:
- Duties and responsibilities
- Required qualifications or experience
- Hours of work
- Pay and benefits
Be clear and realistic about expectations to attract the right candidate—and reduce misunderstandings later.
5. Run Payroll (or Hire Someone Who Can)
You’ll need to set up and run a payroll system to:
- Deduct Income Tax and National Insurance
- Report to HMRC every payday
- Provide payslips
- Submit annual reports and payments
You can do this yourself using payroll software or hire a payroll provider or accountant to handle it for you.
6. Create a Positive Onboarding Experience
First impressions matter. Your new hire is a reflection of your business—so give them the tools and support they need to succeed:
- Provide an induction (even if informal)
- Share company policies and procedures
- Set expectations and objectives
- Encourage open communication
Happy, supported employees tend to stay longer and contribute more.
7. Know Where to Get Help
Hiring for the first time can feel daunting, but there are plenty of resources available:
- ACAS (Advisory, Conciliation and Arbitration Service): Free advice on employment rights and responsibilities.
- GOV.UK: Clear guidance on employing people, payroll, contracts, and pensions.
- Accountants or HR consultants: Worth considering for peace of mind during your first hire.
Final Thoughts: It’s a Big Step—But You’re Not Alone
Hiring your first employee means you’re growing—and that’s something to celebrate. With the right planning, support, and a good understanding of your responsibilities, you can create a great workplace and build a team that helps your business thrive.
✅ Need Space to Grow Your Team?
At CREATE Business Hub, we offer flexible, fully serviced offices perfect for startups and small businesses taking on their first employees. With high-speed Wi-Fi, meeting rooms, and a supportive business community, we help you create the professional environment your team deserves.
👉 Book a tour or find out more at www.createbusinesshub.com
