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.

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