What are the penalties in the UK for not registering an employee for PAYE?
Very heavy, financially. You will be held liable for deductions that should have been made from employee(s), plus penalties. It’s not so much not registering an employee, but the failure to submit the employer’s end of year return. Penalties are based on amounts lost to HMRC. If you are caught out in this, a full enquiry will probably be instigated into your personal tax affairs, and so it goes from bad to worse.
