Though a sole dealer is individually chargeable for the enterprise, you possibly can make use of workers and don’t must arrange a restricted firm. That is so long as you stay the only proprietor of the enterprise.
You’ll need to register as an employer to HMRC and submit a PAYE registration kind, so you possibly can pay earnings tax on behalf of the worker. Be sure to register to HMRC earlier than the worker’s first payday.
As soon as employed, the worker have to be enrolled in a office pension by regulation and can be granted statutory employment rights. You’ll need employers’ legal responsibility insurance coverage, present payslips, and handle payroll, although the final two right here might be outsourced if you want.
Sole merchants are all the time self-employed however being a sole dealer doesn’t essentially imply it’s important to work alone. As a sole dealer, sure you possibly can make use of workers.
What’s a sole dealer?
A sole dealer is somebody who works for themselves, runs a enterprise themselves and is solely chargeable for it.
You should register as a sole dealer when you’ve got earnt £1,000 from self-employment in a single monetary yr.
You’ll be able to hold all of the income your enterprise makes. In any case, sole merchants are primarily the enterprise and plenty of commerce below their very own identify.
Can a sole dealer make use of workers?
Though a sole dealer is individually chargeable for the enterprise, you possibly can make use of workers and don’t must arrange a restricted firm. That is so long as you stay the only proprietor of the enterprise.
You’ll, although, must register as an employer to HMRC and submit a PAYE registration kind, so you possibly can pay earnings tax on behalf of the worker. Be sure to register to HMRC earlier than the worker’s first payday.
What to think about when taking up workers
In case you are to make use of just a few serving to fingers, carry on high of your obligations and their rights. As soon as employed, the worker have to be enrolled in a office pension by regulation and can be granted statutory employment rights.
You’ll need employers’ legal responsibility insurance coverage, present payslips, and handle payroll, although the final two right here might be outsourced if you want. Make sure you’re paying them a minimum of the nationwide minimal wage. From April 2026, that £12.71 for employee aged 21 and over. Discover the most recent figures right here.
Right here’s a guidelines of what to think about:
Register as an employer with HMRC
Get employers’ legal responsibility insurance coverage
Resolve the worker’s wage – utilise a wage calculator akin to Payscale to seek out the going fee
Conduct background checks, akin to authorized proper to work within the UK and DBS checks
A written assertion of employment if they’re working for longer than one month
Enrol in office pension
See additionally: Wage is now not sufficient for candidates – Right here, Anna Dickson, product supervisor, NGA Human Assets, explores what motivates workers, as wage rises fall down the precedence checklist
What authorized paperwork do workers must work within the UK?
As a UK enterprise (at the same time as a sole dealer), it’s very important to remember the paperwork any potential worker will want. Using somebody illegally may imply a fantastic of as much as £60,000 per worker, so it needs to be a precedence when hiring.
With a purpose to legally work within the UK, a worker should maintain considered one of these:
British passport
British citizenship
Irish passport or passport card
European Financial Space (EEA) citizenship
Swiss citizenship
Work visa
Work allow
To shortly discover out whether or not somebody is allowed to work within the UK, you need to use GOV.UK’s checker.
Employees vs freelancers
There are different choices accessible, akin to hiring freelancers, momentary staff or contractors. Freelancers will present an bill for his or her work, and you’ll not be required to supply worker advantages or file their PAYE returns. You’ll need to present gig staff a payslip, although.
Why make use of workers?
With all of the obligations that include hiring an worker, chances are you’ll be questioning why it’s price using somebody over contracting work out.
With an worker, you’ll have dependable, ongoing help to your enterprise. A contractor or freelancer could not all the time have the time or capability to prioritise your work over their different assignments. They will not be as dedicated. And, if someone else books their time, you might be left excessive and dry. Contractors can also be costlier, whereas an worker might be educated to do duties particular to your enterprise.
Extra on sole merchants
What enterprise insurance coverage do I would like as a sole dealer? – What are the primary kinds of enterprise insurance coverage for a sole dealer and what if I’m working from dwelling?
Sole commerce budgeting tricks to keep away from debt – As a sole dealer, keeping track of your funds can typically show difficult – significantly if you’re already snowed below with the day-to-day operating of your enterprise
The right way to scale your enterprise shortly – What does scaling imply? How have you learnt if you’re able to scale and the way do you develop shortly?
