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.

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.

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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.

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