February 23rd, 2023.



Sole traders are always self-employed, but being a sole trader doesn’t necessarily mean you have to work alone. As a sole trader, yes you can employ staff.

What is a sole trader?
A sole trader is someone who works for themselves, runs a business themselves and is solely responsible for it.

You need to register as a sole trader if you have earnt £1,000 from self-employment in one financial year.

You can keep all the profits your business makes. After all, sole traders are essentially the business and many trade under their own name.

Can a sole trader employ staff?
Although a sole trader is individually responsible for the business, you can employ staff and do not need to set up a limited company. This is as long as you remain the sole owner of the business.

You will, though, need to register as an employer to HMRC and submit a PAYE registration form, so you can pay income tax on behalf of the employee. Make sure to register to HMRC before the employee’s first payday.


For the full story at growthbusiness.co.uk CLICK HERE.