By the Renewminder Talent team · Updated 20 October 2026
To employ your first person in the UK you need to: check they'll be an employee, budget for at least the National Living Wage (£12.71 an hour from April 2026, age 21 and over), employer National Insurance (15% above £5,000 a year) and a workplace pension (at least 3% of qualifying earnings), make your workplace safe, register with HMRC as an employer and run PAYE, check their right to work before they start, and get Employers' Liability insurance. At the minimum wage, a full-time employee costs about £2,359 a month with NI and pension.
1. Check they'll be an employee
Employees, agency staff and contractors follow different rules. GOV.UK's first step is to check that the person you're taking on is an employee.
2. Check you can afford it
The costs GOV.UK asks you to plan for.
- Pay of at least the National Living Wage: £12.71 an hour from April 2026 for workers aged 21 and over.
- Employer National Insurance: 15% of pay above £5,000 a year. On a full-time minimum-wage salary that's about £2,968 a year.
- A workplace pension: at least 3% of earnings between £6,240 and £50,270 a year, about £556 a year here.
- Sick pay, and maternity and paternity pay.
- 28 days' paid holiday a year for someone working 5 days a week.
3. Make your workplace safe and accessible
That covers discrimination, disability access, data protection, fire safety, and health and safety, including for someone working from home.
4. Register as an employer and set up PAYE
GOV.UK: you need to register with HMRC so you can pay tax and National Insurance for your employees, and choose how you'll run payroll.
5. Workplace pensions
Check your duties for automatic enrolment: who you must enrol, what you pay, and the records you keep.
6. Employers' Liability insurance
You must get Employers' Liability insurance as soon as you become an employer.
7. Recruit, and check their right to work
You must check that a job applicant is allowed to work for you in the UK before you employ them. Employing someone without a correct check can lead to a civil penalty.
The alternative: not becoming an employer
If the work is email, admin, invoicing, data or customer messages, you can hand it to a dedicated assistant instead. With Renewminder Talent there's no PAYE, pension, holiday pay or insurance for that person on your side: they work for us, and you pay one monthly price, £690 part-time or £1,250 full-time.
Sources
Checked 20 October 2026. Rules change, so check the source before you rely on it.
- GOV.UK: Employing staff for the first time
- National Living Wage from April 2026, age 21 and over
- GOV.UK: Rates and thresholds for employers 2026 to 2027
- GOV.UK: Workplace pensions, what you, your employer and the government pay
- GOV.UK: Holiday entitlement
- GOV.UK: Employers' Liability insurance
- GOV.UK: Check a job applicant's right to work
Quick answers
What do I need to do to employ someone for the first time in the UK?
Check they'll be an employee, budget for pay, employer National Insurance, pension, sick pay and holiday, make your workplace safe, register with HMRC as an employer and set up PAYE, set up a workplace pension, get Employers' Liability insurance, and check their right to work before they start.
What is the minimum wage in 2026?
The National Living Wage is £12.71 an hour from April 2026 for workers aged 21 and over.
Do I need to register as an employer?
Yes. GOV.UK says you need to register with HMRC so you can pay tax and National Insurance for your employees.
Is Employers' Liability insurance a legal requirement?
Yes, as soon as you become an employer.
Can I avoid becoming an employer?
For admin, email, invoicing, data and customer support work, yes: a managed assistant works for the provider, so you pay one monthly price and don't run payroll for them.