Running a business is full of big decisions. One of the most important—and sometimes overwhelming—is deciding how to bring people on board. Should you hire employees or work with freelancers? It’s a question many business owners face. But whichever path you choose, one thing is guaranteed: there will be tax implications.
Before you commit to either option, take a step back. Breathe. Then speak with a trusted local accountant.
Many accountants offer free 30-minute consultations, and those conversations can be goldmines of insight. With just half an hour of expert advice, you could avoid costly mistakes, set your business up for long-term stability, and make decisions with clarity instead of guesswork.
The Real-Life Impact: A Cautionary Tale
At SBC Marketing London, we work closely with small business owners across a variety of sectors. One of our clients, a brilliant entrepreneur in the cleaning industry, had to make the same choice you’re likely facing now. She opted for a mix: some cleaners were employed, others were self-employed.
At first, it worked. She had flexibility. Fewer admin headaches. But over time, a new challenge crept in—loyalty.
Several of the self-employed workers began taking on side jobs, skipping shifts, or leaving with little to no notice. The consistency she relied on started to crumble. It wasn’t about skill or effort. It was about commitment. And when the dust settled, she realised that her business model needed to align not just with cost—but with trust and growth.
That’s when we helped her rethink her structure. She worked with an accountant, reviewed the tax responsibilities of each setup, and built a stronger foundation that supported her team and her goals.
So, What’s the Right Move for You?
There’s no one-size-fits-all answer. But there is a process you can follow:
- Start with strategy – What does your business need today? What will it need six months or a year from now?
- Understand the legal & financial side – Employees come with PAYE, pension obligations, holiday pay, and more. Freelancers bring flexibility but different tax implications and less control.
- Speak to a professional – A qualified accountant will help you see the bigger picture and choose the structure that supports your growth.
At SBC Marketing London, we often remind our clients of one thing:
“Your business model needs to serve your goals—not just today, but for the future.”
It’s easy to get caught up in saving money short-term, but you need to build something sustainable. Something that gives you peace of mind and protects your time, your money, and your vision.
Take Advice. Make Informed Decisions. Build with Confidence.
Running a business isn’t just about getting by. It’s about building something you believe in. And the people you bring in—whether staff or freelancers—play a massive role in that journey.
So before you rush to hire, pause and plan. Speak with someone who understands the numbers, the laws, and the risks. Your future self will thank you.
And remember, you’re not alone. SBC Marketing London is here to support entrepreneurs, startups, and small business owners like you with marketing, strategy, and connections to trusted professionals who can help you build with confidence.
FAQs: Hiring Help for Your Business
1. What’s the difference between hiring an employee and working with a freelancer?
An employee is part of your company and typically works under your direction on a set schedule. A freelancer (or self-employed worker) provides services independently, usually on a project or flexible basis.
2. What are the tax implications of hiring an employee?
You’ll need to register for PAYE, pay employer National Insurance contributions, and potentially offer benefits like pensions, sick pay, and holiday pay.
3. What are the risks of using freelancers instead of employees?
Freelancers can offer flexibility and lower admin costs, but you may face issues with consistency, control over work, and loyalty.
4. Can a business use both employees and freelancers?
Yes, many businesses adopt a hybrid model. However, you’ll need to carefully manage contracts and understand the legal implications of each relationship.
5. How do I know if someone should be an employee or a freelancer legally?
It depends on the nature of the relationship—how much control you have, whether they use their own equipment, and how they’re paid. An accountant or HR professional can help assess this.
6. Do I need a written contract for freelancers?
Absolutely. A clear contract outlines expectations, deliverables, payment terms, and protects both parties.
7. How can SBC Marketing London help me beyond hiring decisions?
We offer strategic marketing support, business advice, and a network of trusted partners, including accountants and consultants, to help you grow with clarity and confidence.
Ready to make the right choice for your business?
Let SBC Marketing London guide you through the process. Book a free 30-minute marketing discovery session today and let’s build your business—together.
