It’s a big step for any sole trader to start thinking about hiring your first member of staff. As your accountants, we can help you make a well-informed decision based on what your figures say. This can help you plan ahead and put your mind at ease. Here are a few things to consider before you start advertising.

Decide on an hourly rate.

As a sole trader, you are not a subject to National Minimum Wage / Living Wage, but your potential employees are. Taking under consideration the National Living Wage (ages 25+) and National Minimum Wage (24 and under) rates, how much can your business afford to pay? Not only that, but will this salary go in line with other vacancies available on the market and attract the right kind of candidate? Can your business sustain the expense and what will you do to ensure it continues to do so? Having a plan is crucial at this early stage of growth.

What type of contract will it be?

Are you ready for a full time employee or would you prefer a flexible or temporary contact? There are pro’s and con’s for both, but it’s well worth taking the time to understand what it is that your growing business needs right now and what it might need in the future.

Apprentices.

If you are willing to invest a little bit of your time and offer your knowledge, an apprentice can be a great and cost-effective solution. Not only that, but you could also be training your potential future staff member whilst also benefiting from a lower rate of pay and financial incentives. It can be a great investment in the future of your business and a very suitable solution if the job you’re advertising is on an entry level.

What are your obligations?

From registering as an employer with HMRC and putting together a contract, getting an employer’s liability insurance, preparing a statement of employment with job details, to employee’s handbook, there certainly is plenty that needs to be done. Don’t let this put you off, as once completed, it will benefit your business for years to come. There are many templates available for members of local Chamber of Commerce and Federation of Small Businesses, you can then make them more specific to your business. If you are not a member, most solicitors and HR companies offer templates for a small fee or a bespoke service if that’s what you’d prefer.

Payroll

Every worker has a right to receive a payslip, and as an employer you must provide one weekly, fortnightly or monthly, whatever payment schedule you decide on. We can take care of this for you and ensure that all the details are correct, holiday pay is calculated accordingly and everything is in order to avoid potential costly fines and tribunal cases.

As a long standing local and independent accountancy firm, we offer a variety of services for you to benefit from as you grow – all under one roof and without needing to switch.