Can I employ staff as a sole trader?
My workload has grown and I'm thinking about taking on my first employee, but I'm not sure if that's allowed as a sole trader.
Asked by Anonymous on 26 February 2026
1 Answer
Yes, being a sole trader relates to your own legal and tax status, not the size of your team, so you can absolutely employ staff. You'll need to register as an employer with HMRC, run PAYE payroll to deduct Income Tax and National Insurance from wages, and comply with employment law including workplace pension auto-enrolment where it applies. This adds meaningful admin, so many sole traders bring in a payroll service or bookkeeper once they take on their first employee.