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As a self-employed cleaner can I employ staff?

Sole traders are always self-employed but being a sole trader doesn’t necessarily mean you have to work alone. As a sole trader, yes, you can employ staff. There seems to be a bit of a myth, that you have to set up as a Limited business to employ people; this just isn't correct!

However, it’s important to bear in mind that you carry all the liability as a sole trader (given that you & your business don’t have a different legal identity).

You will need to register with HMRC as an employer & submit RTI (Real Time Information) submissions to HMRC.  You may also need to set up an employer’s pension scheme, if they will earn £10,000 (for the 24/25 tax year) or more in your employment. This is known as ‘auto-enrolment’.

You should also look into statutory employment rights & make sure that you understand what your legal requirements as an employer are. In addition, you will need to get employers’ liability insurance. It’s also a really good idea to carry out background checks on anyone you’re considering hiring; you must check that they have a legal right to work in the UK for instance.   

 

One thing I see self-employed cleaners doing all the time...

...is referring to sub-contractors (other self-employed cleaners that they work with, for their clients) as 'employees'.  Please do not do this. They are sub-contractors, not 'employees'.  People are only employees if they're on your payroll. 

Do you have have some questions for me? You can book a Zoom call in with me here:

Don't want to pay for a bookkeeper to do it all, but don't want to go alone either?