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Many business owners will ask `I am self-employed, can I pay my wife a wage. ' If you're a sole trader, you can't pay yourself a salary as your business will pay tax on your self-employment profits. However, you could set up a PAYE scheme, and once in place, you can consider hiring my spouse.
Yes, sole traders can have employees as long as they remain the sole owner of the business. If you're a sole trader and you want to hire employees, you won't need to set up a limited company. However, you'll need to register as an employer with HMRC and submit a PAYE registration form.
Legal requirements of becoming a sole trader Register for Self Assessment. Choose a name that won't get you in trouble. Keep records of your business's sales and expenses. Send a tax return every year. Pay your tax bill. Comply with HMRC's VAT rules. Consider CIS if you work in the construction industry.
Being a sole trader does not necessarily mean you have to operate your business alone. In short, yes ? as a sole trader you are permitted to hire employees. As an employer you must comply with the legal obligations that any other employer has.
If you're wondering if a sole trader can have employees, the answer is yes ? but you'll need to ensure that you set up your payroll correctly before they can start working.