How an employer creates a PAYE online account
For an employer to be able to make a claim to cover wages for employees on temporary leave ('furlough') due to coronavirus (COVID-19) the employer must have a PAYE online account.
This is a step-by-step guide on how to set up a PAYE online account.
Setting up an account can take "up to 10 days" as HMRC post a verification code. It is now our understanding that HMRC are going to remove this step.
Enrol for PAYE Online
How you enrol depends on whether you already have an online business tax account for other taxes, e.g. Corporation Tax or Self Assessment.
You don’t already have an online business tax account
Register for a new account by following the steps detailed below.
1. Before starting you will need the following information
- Your email address
- Your full name
2. Go to the "HMRC services: sign in or register" web page
Click the following link.
2.1. Select "Sign in"
Do not select the "Register for HMRC online services" link.
2.2. Scroll to the bottom of the page and select "Continue to your account"
2.3. Select "Create sign in details"
3. Enter your email address and select "Continue"
If you are told that your email address is already in use then you already have an account, please refer to the instructions above for those that already have an account.
4. Check your email inbox
You will be sent a security email from GOV.UK to the email address that you entered at the step above (the below is an example of how that might look).
5. Enter the confirmation code and select "Confirm"
6. Your email address will be confirmed, select "Continue"
7. Enter your full name and select "Continue"
Your full name is your first name + any middle names + surname. You do not need to enter your title.
8. Create a password and select "Continue"
Considering writing down your chosen password to refer to at a later date.
9. Set up a recovery word, select "Continue"
10. Create a recovery word and select "Continue"
Considering writing down your recovery word to refer to at a later date.
11. Confirmation of your Government Gateway user ID, select "Continue"
You will receive an email from GOV.UK confirming your Government Gateway user ID, please retain this to refer to at a later date.
12. Move onto the next guide "Adding PAYE for employers to your business tax account"
Adding PAYE for employers to your business tax account
1. Before starting you will need the following information
- HMRC office number
- Employers PAYE reference
- Accounts office reference
2. Log in to your business tax account (if you are not already logged in)
Log in to your business tax account via HMRC Online Services.
Please note on logging in you maybe taken to a temporary screen that HMRC have put in place. On that screen you need to scroll to the bottom to be able to select an option "Continue to your account"
3. Select "get online access to a tax, duty or scheme"
If your business tax account already shows "PAYE for employers" listed under your taxes then you do not need to follow these steps.
4. Select "Employers or intermediaries, for example PAYE for employers or CIS" and select "Continue"
5. Select "PAYE for employers" and select "Continue"
6. Select "Yes" to having a PAYE reference number and select "Continue"
7. Enter your HMRC office number, Employers PAYE reference, Accounts office reference and select "Request access"
8. Confirmation of your access request will now be on screen, select "Continue"
Please note that it is our understanding that HMRC has temporarily removed the need to verify the account via a posted code.
You will receive an activation code in the post "with 7 days". This code is needed to complete the process.
9. You will be returned to your online business tax account
10. Sign out of your account and return once you have the activation code that will arrive in the post
What to do when you receive your activation code through the post
Please note that it is our understanding that HMRC has temporarily removed the need to verify the account via a posted code.
1. Before starting you will need the following information
- Activation code (found on the letter posted to you)
2. Log in to your business tax account (if you are not already logged in)
Log in to your business tax account via HMRC Online Services.
Please note on logging in you maybe taken to a temporary screen that HMRC have put in place. On that screen you need to scroll to the bottom to be able to select an option "Continue to your account"
3. Select "activate your PAYE for employers"
4. Enter your activation code and select "Get access"
5. Your access will now be confirmed, select "Continue"
