08: Taking on employees

You might start off doing everything yourself, but when your business grows you will need to employ staff.

Employers must deduct tax and national insurance from employees’ pay under PAYE. You will have to register with HMRC as an employer and set up an efficient payroll system. There are additional rules for taking on subcontractors in the construction industry.

Here are some other issues to consider:

• Recruitment, management and motivation of staff.
• Training and improving staff performance.
• Creating a written statement of terms of employment. 
• Equal opportunities.
• The national minimum wage and employee rights.
• Employer’s liability insurance.
• Health and safety.
• Pension arrangements.