Employing Self Employed Staff – A Small Business Guide

Working for someone on self employed basis

We all have an idea of how tricky are employment laws. In the case of a beginner who seeks to employ staff for his business, it becomes even harder. Working for someone on a self-employed basis is possible just like other employers and regular companies. The contractors work with multiple businesses at the same time, you should be aware of the different routes of hiring before you aim to start the employment process.

There is a range of queries arising from self-employed people. This might include the queries about how a self-employed person can employ the staff? Or if a business is allowed to work with the staff who work as self-employed individuals. Such common questions will be addressed in today’s article. That will help you develop an understanding of self-employed owners of the business and whether the self-employed staff is suitable to work with.


A Self-Employed Individual and Employing Other People

Before delving into the discussion further, let’s recall the status of a self-employed individual. This is a person who takes responsibility for the failure and success factors of his company. The good news for you as a self-employed business owner is that you are fairly allowed to work with self-employed individuals as staff for your business and company.

However, there are certain rules set up for you by HMRC in this regard. These are listed and explained below for you:

  • You are required to register as an employer with HMRC if you are carrying out your business as a self-employed individual.
  • You are ineligible to pay your employees if your business is not registered with HMRC.
  • When you finally choose to employ a staff member, you need to let this come into HMRC’s knowledge at least four weeks earlier.
  • Your income should be steady enough to afford the payment of your employees.
  • You are required to deal with the amount of insurance of your employees.
  • Taxes and other contributions of your staff members will be your responsibility.


Reach out to one of our experts at our accountingfirms and discuss your queries. We will love to get in touch with you and provide the best solution to your accounting problems. 


How is it to Employ Self-Employed Staff?

It is popular these days that people are prone to earn money in multiple ways. People tend to work as employed and self-employed staff to get the increased amount of payment. In case you choose to hire an employee for your business who is self-employed, there are no such rules that say no to this. However, your responsibility as an owner is just the same as it is for regular employees. This explains that you have to contribute your part for their national insurance amount as well.

Moreover, other employee-employer responsibilities like pension, sick leave and other holidays are also your responsibility. The case of ramifications is way more complex for the self-employed employee than it is for the employer. This is because there is a need to add the employed income into the amount earned from the self-employed ways.

The tax returns are another serious thing to consider along with the balancing of employed and self-employed roles for you.


Are you a self-employed individual who intends to employ staff to serve your company? Learn with our professionals how to make such hiring possible for your business. 


The Bottom Line

Now that you have developed a better understanding of working for someone on a self-employed basis, we can bring the discussion towards wrapping up. We can finally say that to keep the process seamless, certain rules and regulations are serious to adhere to. This will help to maintain a balance between the employed and self-employed roles managed by you. Moreover, these few minutes of reading will help you to keep the process going professionally because you know that there is no chance of ineligibility in working with self-employed workers.


Disclaimer: The information about working for someone on a self-employed basis provide in this article is general in nature. It does not intend to disregard any of the professional advice.