smallbusiness.co.uk: Helping your business think big

Email a Friend

Can I employ people if I am a sole trader?

The fastest way to start a business is as a sole trader. You can start trading straight away and have three months to tell HM Revenue and Customs (HMRC) of your self-employed status before you incur a fine.

You can download the form to register as a sole trader from here.

Once you get going you can employ people as you would do in a limited company, but you have to tell HMRC that you are doing so.

You can find more information about registering as an employer here or call the new employer’s helpline on 0845 607 0143.

A contract of employment is made as soon as the job offer is accepted.

The term ‘contract’ can be a bit misleading and is often misused as it doesn’t refer to a piece of paper - initially, it doesn’t have to be in writing. However, your employee is entitled to a written statement of the main terms of the contract within two months of starting work.

You can get more information about employment contracts here and you can buy a standard written statement here.

See also: Sole trader or limited company?

Previous article

Why should a small business get online?

Next article

Register as a sole trader

Post a comment

Related

News | Management

Get paid for employing a student this summer

News | Management

Get the Investors in People standard

News | Outlook

Local start-ups are the people’s choice

Guide | Ideas & business planning

How to become a sole trader

Small Business Offers

More from Small Business

Financing a Business
Getting a small business loan from a small business

Getting a small business loan from a small business

Here, we look at community development finance institutions (CDFIs) and how they can assist small...  

Running a Business
How to manage an inbox better in your small business

How to manage an inbox better in your small business

Ian Cowley gives seven quick tips to organising your emails for maximum productivity....  

News
Small businesses paid late by local councils

Small businesses paid late by local councils

Some small businesses are waiting up to 40 days for payment from local councils, far behind...  

Blog
Small businesses find the going tough in modern economy

Small businesses find the going tough in modern economy

More than three quarters of SME leaders are not confident in the steady recovery of...