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


As a small business develops it may become necessary to hire some help in the form of either an employee or a contractor. There are a number of benefits when you hire a contractor or an employee, but how do you decide which one will be most suitable for your business?

Hiring an employee will possibly entail registering with HM Revenue & Customs for a PAYE scheme. This will result in additional administration to remain compliant with HMRC. There are rules which have to be adhered to when employing someone, like the minimum wage rules and employment laws. As a manager you will have less time to spend on the actual running of your business and have additional responsibilities for employees. However, permanent employees will often have a loyalty towards your business and be willing to take responsibility in more roles within the company.

A contractor offers flexibility which helps manage the peaks and troughs of demand. Hiring a contractor doesn’t require the operation of a PAYE scheme, leaving you free to concentrate on other tasks. However, a contractor can choose the hours and rate of pay, which may not be suitable for your company.

When hiring an employee or contractor it is necessary to consider the employment status, whether employed or self employed. An employee will usually work set hours and have to do the work themselves. The employee will be told when to do the work and where and how to carry out duties. A contractor is self employed, deciding which jobs they take on and provide their own tools and equipment.

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.