As a taxpayer in the United Kingdom, you must register for a personal tax account and obtain a PAYE number if you're working and earning an income.
Step 1: Register for Self Assessment
If you're self-employed or working as a sole trader, you must register for self-assessment. You'll receive a UTR number (Unique Taxpayer Reference) when you register, which you'll need to complete your PAYE application.
Step 2: Gather the Required Information
Before you start the application process, make sure you have the following information:
- Your National Insurance Number
- Your personal contact details
- Details of your employers, including their PAYE reference numbers (if applicable)
- Your P45, if you've left your previous job recently
Step 3: Complete the Application
You can apply for a PAYE number by filling out the online application form on the HM Revenue and Customs (HMRC) website. Alternatively, you can download and fill out form P2 from the HMRC website and mail it to the address provided.
Once your application has been processed, you'll receive your PAYE number and a welcome pack from HMRC within two weeks.
Step 4: Inform Your Employer
If you're already working and do not have a PAYE number, you should inform your employer as soon as possible. Your employer needs to know your PAYE number to deduct tax and National Insurance contributions from your salary.
Note:
If you're working as a contractor or freelancer, you may need to register as a limited company before applying for a PAYE number.
Overall, the PAYE system plays a crucial part in ensuring that everyone pays their fair share of taxes in the UK. Obtaining a PAYE number is a straightforward process that can be completed online. Once you've got your number, don't forget to inform your employer so that they can correctly tax your earnings.
