Can a sole trader hire someone?

Yes. “Sole trader” describes how the business is owned. It doesn’t mean you have to do every job yourself. You can employ staff or bring in other businesses, but your responsibilities depend on the actual arrangement. GOV.UK: becoming a sole trader.

Decide what kind of help you need

An employee who works regularly under your direction is different from an independent business providing a defined service. Calling someone a subcontractor, or asking them to send invoices, doesn’t settle their status.

Check tax status and employment rights before the work starts. The tests are related, but they’re not identical. GOV.UK: employment status, HMRC: CEST.

Budget for more than the headline wage

Employing someone can bring:

• employer NI

• pension duties

• paid leave

• sick pay

• insurance

• equipment

• payroll admin

Check the current rules rather than assuming the hourly wage is the full cost. GOV.UK: getting ready to employ someone.

Before the person starts, work through the official employment checklist. It covers:

• the relevant checks

• employment terms

• payroll

• minimum wage

• insurance

• workplace obligations

Auto-enrolment pension duties, the rules on automatically putting qualifying staff into a workplace pension, can apply from the first employee. Work out who qualifies and what your duties are, rather than assuming a very small business is exempt. GOV.UK: employing staff.

If you engage a freelancer instead

Agree:

• the work

• the price

• responsibilities

• confidentiality

• ownership

• payment terms

Check whether your client allows subcontracting, and what insurance or data-protection arrangements you need.

Is it construction work? The Construction Industry Scheme (CIS) may bring obligations even when the person is genuinely self-employed. HMRC: CIS.

A useful first step is to write down the work you need covered, and how much control and ongoing commitment is involved. Then choose the arrangement that reflects reality, and put it in writing. That’s easier than trying to fix the classification after payments have started.