What Is a New Employee Starter Form and How Do You Complete It Correctly?

Submitting a new employee starter form accurately and on time is critical to ensure a new hire is set up on the payroll correctly, avoids an emergency tax code, and receives their first paycheck without delays. This mandatory document, required by tax authorities like HMRC in the UK, collects essential information to assign the correct tax code from day one. Completing the form before the employee's first payday is the most important step to prevent financial complications.

What is a New Employee Starter Form?

A new employee starter form (often called a starter checklist) is a formal document that a new hire completes at the beginning of their employment. Its primary function is to provide the employer with the necessary details to register the individual on the company’s payroll system accurately. This process ensures the correct amount of tax is deducted from their salary from the very first payment. Failure to process this form correctly can trigger an emergency tax code, resulting in significant over-taxation that the employee must later reclaim.

What is the Deadline for Submitting the Starter Form?

The deadline for the employer to submit the information is before the new employee's first payday. This timeline is non-negotiable for compliant payroll processing. Submitting the form late forces the payroll system to apply an emergency tax code, which is a temporary, higher rate of tax. Based on our assessment experience, this almost always results in the employee paying more tax than they owe. While HMRC does provide a process for rectifying this and issuing a rebate, timely submission eliminates this unnecessary stress and administrative burden for both the employee and the HR department.

What are the 5 Key Sections of a Starter Checklist?

A comprehensive starter form is divided into logical sections to capture all required data systematically.

1. Employee Personal Details? This section establishes the new hire's identity. It typically requests:

• Full name
• Date of birth
• Gender
• Full address and postcode
• National Insurance number (a unique identifier for tax and social security purposes in the UK)

Accuracy here is vital, as any error can delay payroll setup.

2. Employment Start Date? This seems straightforward, but it’s crucial for determining the tax year and period. The employee should confirm the exact first day of paid work with their manager to ensure it matches the employer’s records. This date is also often required for future reference checks, such as when applying for a mortgage.

3. Employee Statement (Tax Status)? This is a critical section that directly determines the employee's tax code. The employee must select one of three statements that best describes their current employment situation:

• Statement A: For those for whom this is their first job since April 6th, with no current pension or taxable state benefits.
• Statement B: For those who have had another job since April 6th or receive a state benefit, but do not receive a pension.
• Statement C: For those who have another job or receive a pension.

Selecting the wrong statement will lead to an incorrect tax code.

4. Student Loan Details? If the employee has an outstanding student loan, they must declare it here so that repayments can be deducted through the payroll. They need to specify their repayment plan (e.g., Plan 1, Plan 2, Plan 4, or Postgraduate Loan), which depends on when and where they studied.

5. Declaration? The employee must sign and date the form to confirm that all the information provided is, to the best of their knowledge, true and complete. This legal declaration underscores the importance of accuracy.

What Other Forms Might a New Employee Need to Complete?

Beyond the government-mandated starter checklist, companies often require additional documentation to cover specific operational and legal needs.

• Company Policy Acknowledgment Forms: These confirm the employee has read and understood key company policies, such as health and safety protocols, data protection rules, and codes of conduct.
• Confidentiality Agreements (NDAs): Common in sectors like technology or R&D, these legally bind the employee to not disclose proprietary company information.
• Non-Compete Agreements: These clauses, often included in employment contracts, may restrict an employee from working for direct competitors for a certain period after leaving the company.

To ensure a smooth onboarding process, new hires should carefully complete every section of the starter form and submit it promptly. For employers, verifying the information and processing it before the first payday is essential for compliance and a positive employee experience. Accurate completion of the employee statement is the single most important factor for correct tax code assignment.