Starting a new business? Get 40% off our accountancy services for 3 months! 😀


The quick answer is that yes, even sole traders can become employers. If your business is growing and you need to take on staff, you can hire someone to help you. Check out our free online guide for first-time employers.

Who can I employ if I’m a sole trader?

Although you are in business by yourself as a sole trader, you can still employ others. You can hire someone as a full or part time worker, or even on a casual basis.

You’ll still be required to meet the same obligations as any other first time employer, such as organising a pension, pay and PAYE.

If you pay your employee over the threshold for PAYE, or paying at or above the Lower Earnings Limit for National Insurance, you will have to register as an employer. You will also have to register if you pay employee benefits.


managed payroll services

What payroll system should I use?

As an employer you will have to decide which type of payroll system to use. You can either operate this in-house, or outsource your payroll to someone else. It’s entirely up to you, as long as you comply with HMRC and other legal requirements.

About The Author

Suzanne Goodier-Dodson

I'm a Payroll Manager with a degree in Mathematics, responsible for overseeing every aspect of payroll for our clients. In my spare time, I love to travel and going to gigs. Read my Staff Spotlight.

More posts by this author
Inline Feedbacks
View all comments

Read more posts...

Umbrella Companies for Self-Employed Contractors

When you set up in business as a contractor you might either work as a sole trader or as a limited company….

Read More

Get Ready for Small Business Saturday UK 2022

Small Business Saturday started in the US in 2010, on the first Saturday following Thanksgiving. It aims to encourage shoppers to consider…

Read More

Architects and Tax

Architecture is a highly diverse sector when it comes to tax. It’s partly down to the type of businesses that carry out…

Read More
Back to Blog...

Confirm Transactions

The number of monthly transactions you have entered based on your turnover seem high. A transaction is one bookkeeping entry such as a sale, purchase, payment or receipt. Are you sure this is correct?

Yes, submit my quote
No, let me change it

Please contact our sales team if you’re unsure

VAT Returns

It is unlikely you will need this service, unless you are voluntarily registered for VAT.

Are you sure this is correct?

Yes, the business is VAT registered
No, let me change it

Call us on 020 3355 4047 if you’re not sure.


You only need this service if you want us to complete the bookkeeping on your behalf.

Would you prefer to complete your own bookkeeping?


Call us on 020 3355 4047 if you’re not sure.