{"id":20920,"date":"2026-08-05T10:21:14","date_gmt":"2026-08-05T09:21:14","guid":{"rendered":"https:\/\/www.sage.com\/en-gb\/blog\/?p=20920"},"modified":"2026-09-14T15:44:58","modified_gmt":"2026-09-14T14:44:58","slug":"hiring-freelancers-contractors-employees-business","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-gb\/blog\/hiring-freelancers-contractors-employees-business\/","title":{"rendered":"Contractor versus employee or freelancer: What\u2019s best for your business?"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--standard entry-header--has-illustration entry-header--has-illustration--standard\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/category\/people-leadership\/\" class=\"entry-header__link\">People &amp; Leadership<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tContractor versus employee or freelancer: What\u2019s best for your business?\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\tUndecided about whether to hire a freelancer, contractor or employee? Read on to find out who would be the best fit for your business.\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \">Published <time class=\"entry-date published\" datetime=\"2026-08-05T10:21:14+01:00\">5 August, 2026<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"Contractor versus employee or freelancer: What\u2019s best for your business?\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-gb\/blog\/hiring-freelancers-contractors-employees-business\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n\t<\/header>\n\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-gb\/blog\/author\/karanjohnson\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2025\/03\/Karan-Johnson-350x350.jpg\" class=\"entry-author__image\" alt=\"Karan Johnson\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2025\/03\/Karan-Johnson-350x350.jpg 350w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2025\/03\/Karan-Johnson.jpg 462w\" sizes=\"auto, (max-width: 40px) 100vw, 40px\" \/>\t\t\t\t<span class=\"entry-author__name\">Karan Johnson<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Is your small business at a point where things are changing for the better?&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Maybe you\u2019ve&nbsp;won a big contract and need some help fulfilling it. Or you\u2019re in a position to expand and need to&nbsp;bring on&nbsp;more people.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You know the answer to growing your business is more workers, but should you hire a freelancer for short-term help, a&nbsp;specialised&nbsp;contractor,&nbsp;or a full-&nbsp;or part-time employee?&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Making the right decision starts with understanding&nbsp;the pros and cons of hiring freelancers, contractors,&nbsp;or employees and their implications for your small business.&nbsp;<\/p>\n\n\n<section id=\"key-takeaways\" class=\"wp-block-sage-key-takeaways\"><div class=\"sage-key-takeaways__inner\"><h2 class=\"wp-block-heading has-h-3-font-size\">Key takeaways<\/h2>\n<ul class=\"wp-block-list\">\n<li><strong>Freelancers,&nbsp;contractors,&nbsp;and employees<\/strong> differ in how they work, how&nbsp;they\u2019re&nbsp;paid, and the level of responsibility your business takes on for tax, payroll,&nbsp;benefits,&nbsp;and employment rights.&nbsp;<\/li>\n\n\n\n<li><strong>Freelancers <\/strong>are usually best for flexible, short-term,&nbsp;or specialist support, while contractors can suit longer projects that need specific&nbsp;expertise&nbsp;and agreed deliverables.&nbsp;<\/li>\n\n\n\n<li><strong>Employees<\/strong> usually offer the most stability and control for ongoing work, but they also come with greater legal,&nbsp;payroll,&nbsp;and&nbsp;benefits&nbsp;responsibilities for your business.&nbsp;<\/li>\n<\/ul>\n<\/div><\/section>\n\n\n<p class=\"wp-block-paragraph\">Here&#8217;s what we cover:<\/p>\n\n\n<?xml encoding=\"utf-8\" ?><div class=\"wp-block-yoast-seo-table-of-contents yoast-table-of-contents\"><ul><li><a href=\"#h-what-s-the-definition-of-a-freelancer\" data-level=\"2\">What&rsquo;s&nbsp;the definition of a freelancer?<\/a><\/li><li><a href=\"#h-what-s-the-definition-of-a-contractor\" data-level=\"2\">What&rsquo;s&nbsp;the definition of a contractor?<\/a><\/li><li><a href=\"#h-what-s-the-definition-of-an-employee\" data-level=\"2\">What&rsquo;s&nbsp;the definition of an employee?<\/a><\/li><li><a href=\"#h-what-to-consider-when-deciding-who-to-hire\" data-level=\"2\">What to consider when deciding who to hire<\/a><\/li><li><a href=\"#h-hiring-employees-contractors-or-freelancers-your-decision\" data-level=\"2\">Hiring&nbsp;employees,&nbsp;contractors,&nbsp;or freelancers: Your decision<\/a><\/li><li><a href=\"#h-frequently-asked-questions\" data-level=\"2\">Frequently asked questions<\/a><\/li><\/ul><\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><div class=\"single-cta\">\n\t<a\n\t\tclass=\"button button--primary gate-a847ddcb-db84-4257-a852-4bfd46e34acb\"\n\t\trole=\"button\"\n\t\tdata-button-location=\"content_area\"\n\t\thref=\"#gate-a847ddcb-db84-4257-a852-4bfd46e34acb\"\n\t>Download your free copy of How to attract, engage and keep great people to help you build your team so your business can thrive<\/a>\n<\/div>\n<\/p>\n\n\n\n<h2 id=\"h-what-s-nbsp-the-definition-of-a-freelancer-nbsp\" class=\"wp-block-heading\">What\u2019s&nbsp;the definition of a freelancer?&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Freelancers are self-employed professionals who handle their own taxes and&nbsp;don\u2019t&nbsp;receive benefits. They are sometimes known as sole traders.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">According to UK independent&nbsp;professionals&nbsp;association IPSE, the country&nbsp;<a href=\"https:\/\/www.ipse.co.uk\/articles\/how-many-freelancers-are-in-the-uk\" target=\"_blank\" rel=\"noreferrer noopener\">ended 2024 with about 2.05 million freelancers<\/a>&nbsp;in the workforce.&nbsp;IPSE defines freelancers as those working in highly&nbsp;skilled occupations, as opposed to the 2.15 million self-employed people who focus on less-skilled areas like gardening,&nbsp;cleaning,&nbsp;and babysitting.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThey\u2019re ideal for short-term or&nbsp;specialised&nbsp;work,\u201d says Joanne Bell, managing director of accountancy practice&nbsp;<a href=\"https:\/\/www.bellsaccountants.co.uk\/\" target=\"_blank\" rel=\"noreferrer noopener\">Bells Accountants<\/a>.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, Dave Chaplin, CEO and founder of&nbsp;tax&nbsp;compliance firm&nbsp;<a href=\"https:\/\/www.ir35shield.co.uk\/\" target=\"_blank\" rel=\"noreferrer noopener\">IR35 Shield<\/a>,&nbsp;cautions that \u201csole traders present a tax risk where HMRC can investigate and rule that the sole traders were really employees, leaving the firm with a sizable tax bill\u201d.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So,&nbsp;it\u2019s&nbsp;important to understand what makes a worker a freelancer according to&nbsp;<a href=\"https:\/\/www.gov.uk\/employment-status\/selfemployed-contractor\" target=\"_blank\" rel=\"noreferrer noopener\">HMRC employment status guidelines<\/a>.&nbsp;<\/p>\n\n\n\n<h3 id=\"h-advantages-of-hiring-freelancers-nbsp\" class=\"wp-block-heading\">Advantages of hiring freelancers&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The flexibility of freelancers is a plus for&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/size\/small-business\/\" target=\"_blank\" rel=\"noreferrer noopener\">small businesses<\/a>.&nbsp;They\u2019re&nbsp;usually available&nbsp;to fill in skill gaps&nbsp;at short notice.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With freelancers,&nbsp;there\u2019s&nbsp;also&nbsp;less of a contractual and legal burden compared to employees.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThere are not normally any HR issues to take into account,&nbsp;as you are not the freelancer\u2019s employer, but it is important to ensure that you have a contract in place,\u201d says Mike Keeling, director of&nbsp;<a href=\"https:\/\/meadesumbrella.co.uk\/\" target=\"_blank\" rel=\"noreferrer noopener\">Meades Umbrella<\/a>, a company that provides umbrella services for contractors and freelancers.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Chaplin&nbsp;sums up the main benefit of hiring a freelancer, saying, \u201cThe freelance arrangement is remarkably straightforward. You specify the project requirements and deliverables, agree on a price,&nbsp;and the work is completed.\u201d<\/p>\n\n\n\n<h3 id=\"h-disadvantages-of-hiring-freelancers-nbsp\" class=\"wp-block-heading\">Disadvantages of hiring freelancers&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Hiring a freelancer could cost your business less than an employee over the long term,&nbsp;but&nbsp;according to&nbsp;Keeling, \u201cA freelancer traditionally would be paid more than an equivalent permanent employee\u2014after all, they come with a specific skill set that commands a price.\u201d&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Another disadvantage is&nbsp;a lack&nbsp;of quality control. Freelancers have complete autonomy over their work, so&nbsp;there\u2019s&nbsp;little in the way of quality assurance.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The process of finding a qualified freelancer can be time-consuming.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Chaplin&nbsp;says another downside of hiring a freelancer is that sole traders could claim they are&nbsp;<a href=\"https:\/\/www.personneltoday.com\/hr\/false-self-employment-case-adds-to-worker-status-conundrum\/\" target=\"_blank\" rel=\"noreferrer noopener\">\u201cworkers\u201d under employment law<\/a>&nbsp;and seek&nbsp;additional&nbsp;rights and holiday pay.&nbsp;<\/p>\n\n\n\n<h2 id=\"h-what-s-nbsp-the-definition-of-a-contractor\" class=\"wp-block-heading\">What\u2019s&nbsp;the definition of a contractor?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Contractors are independent workers or businesses hired to deliver a specific service, project,&nbsp;or piece of work under agreed terms. They are not on your payroll and are typically engaged through a service contract.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Contractors cannot be considered employed by your business because they&nbsp;don\u2019t&nbsp;usually work under an employment contract. They are&nbsp;generally responsible&nbsp;for paying their own tax and National Insurance under the UK\u2019s&nbsp;IR35 rules.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, their employment status can depend on how the working relationship&nbsp;operates&nbsp;in practice, including the level of control, supervision,&nbsp;and ongoing obligation involved.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In some cases,&nbsp;<a href=\"https:\/\/www.gov.uk\/employment-status\/selfemployed-contractor\" target=\"_blank\" rel=\"noreferrer noopener\">contractors can be classed as employees<\/a>&nbsp;if&nbsp;they\u2019re&nbsp;employed by an agency and work for a client.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Contractors&nbsp;are responsible for&nbsp;their own tax and are governed by&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/ir35-soft-landing-period-contractors\/\" target=\"_blank\" rel=\"noreferrer noopener\">IR35 rules<\/a>.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Consider hiring a contractor if you need someone with highly&nbsp;specialised&nbsp;skills and your project will last for a significant amount of time.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The&nbsp;contractor&nbsp;terms would normally be specified in a fixed-term contract.&nbsp;This may be agreed directly with the contractor\u2019s limited&nbsp;company&nbsp;or&nbsp;arranged through an agency or umbrella company.&nbsp;<\/p>\n\n\n\n<h3 id=\"h-benefits-of-hiring-contractors-nbsp\" class=\"wp-block-heading\">Benefits of hiring contractors&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Chaplin&nbsp;says, \u201cContractors who&nbsp;operate&nbsp;via limited companies offer an advantage to small businesses.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe risk of misclassifying a contractor as being outside IR35 does not apply when small companies hire contractors. The IR35 reforms only shift the risk to firms once they are medium or large.\u201d&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Due to the size and complexity of the work involved, contractors normally work with one client at a time. This means you have more control over how the work is performed.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s&nbsp;not unusual for contractors to work at your business premises, which can result in forming stronger working relationships.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Although contractors demand high fees, they could be more cost effective because you&nbsp;don\u2019t&nbsp;have to pay employee costs.&nbsp;<\/p>\n\n\n\n<h3 id=\"h-drawbacks-of-hiring-contractors-nbsp\" class=\"wp-block-heading\">Drawbacks of hiring contractors&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Contractors&nbsp;generally charge&nbsp;high rates, so&nbsp;it\u2019s&nbsp;important to&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/create-budget-for-your-business\/\" target=\"_blank\" rel=\"noreferrer noopener\">budget<\/a>&nbsp;for these costs.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In addition, the contractor can work for a competitor when they have completed your project. You can protect yourself by including a non-compete clause and a confidentiality agreement in their&nbsp;contract.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Keeling&nbsp;states that&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/payroll-compliance-guide\/\" target=\"_blank\" rel=\"noreferrer noopener\">compliance<\/a>&nbsp;\u201cisn\u2019t normally a major issue for small businesses who fall under the IR35&nbsp;threshold,&nbsp;and you&nbsp;won\u2019t&nbsp;have to worry about dealing with disguised employment issues\u201d.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">He adds, \u201cIf, however, your business is over the threshold, it is your responsibility to ensure that your contractor is paying the correct amounts of tax and National Insurance,&nbsp;so you may need to check how the worker is paid\u2014via their own limited company or via an umbrella [company].\u201d<\/p>\n\n\n\n<h2 id=\"h-what-s-nbsp-the-definition-of-an-employee-nbsp\" class=\"wp-block-heading\">What\u2019s&nbsp;the definition of an employee?&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">An employee is someone who works for your business on an ongoing basis, full-time or part-time,&nbsp;and for&nbsp;a specified number of hours.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Employees usually work under an&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/contract-of-employment\/\" target=\"_blank\" rel=\"noreferrer noopener\">employment contract<\/a>, which sets out their role, pay, working hours, responsibilities, and employment rights.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You&nbsp;are&nbsp;responsible for&nbsp;deducting income tax and National Insurance contributions for your employees. They normally work at your place of&nbsp;business&nbsp;but&nbsp;can also work remotely or on a hybrid basis.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Chaplin&nbsp;adds, \u201cEmployees are entitled to employment rights including minimum wage, sickness rights, maternity\/paternity rights, etc.\u201d&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Think about recruiting a permanent employee when you have ongoing work.<\/p>\n\n\n\n<h3 id=\"h-pros-of-hiring-employees-nbsp\" class=\"wp-block-heading\">Pros of hiring employees&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">An advantage of hiring employees is that you have more predictability because&nbsp;there\u2019s&nbsp;a dedicated person doing work over the long term. This enables you to more accurately&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/cash-flow-forecasting-small-businesses\/\" target=\"_blank\" rel=\"noreferrer noopener\">forecast your cash flow<\/a>.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Employees can contribute to a strong business culture. This can lead to greater collaboration and better results for your business.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Overall, you have more control when you hire employees since you set their working times,&nbsp;targets,&nbsp;and performance indicators.&nbsp;<\/p>\n\n\n\n<h3 id=\"h-cons-of-hiring-employees-nbsp\" class=\"wp-block-heading\">Cons of hiring employees&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Chaplin&nbsp;notes that, \u201cEmployees require the most administration,&nbsp;as you are responsible for their income tax and NICs via PAYE and must maintain accurate payroll records.\u201d&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The cost of salaries, tax responsibilities,&nbsp;and benefits&nbsp;can&nbsp;quickly add up and can be a disadvantage of hiring&nbsp;employees.Employers&nbsp;must also&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/human-resources\/training-management\/\" target=\"_blank\" rel=\"noreferrer noopener\">manage employee training<\/a>&nbsp;and development,&nbsp;which can be time-consuming and costly because you might need to hire a manager to take on this role if&nbsp;you\u2019ve&nbsp;not got one in place already.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Lack of flexibility is another downside&nbsp;of&nbsp;hiring employees. If your business&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/prepare-business-recession\/\" target=\"_blank\" rel=\"noreferrer noopener\">experiences a downturn<\/a>,&nbsp;it\u2019s&nbsp;more difficult to adapt to the new circumstances when you have permanent employees.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You need to be aware of and compliant with all employment laws to ensure you avoid falling foul of legal requirements.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><div class=\"single-cta\">\n\t<a\n\t\tclass=\"button button--primary gate-a847ddcb-db84-4257-a852-4bfd46e34acb\"\n\t\trole=\"button\"\n\t\tdata-button-location=\"content_area\"\n\t\thref=\"#gate-a847ddcb-db84-4257-a852-4bfd46e34acb\"\n\t>Download your free copy of How to attract, engage and keep great people to help you build your team so your business can thrive<\/a>\n<\/div>\n<\/p>\n\n\n\n<h2 id=\"h-what-to-consider-when-deciding-who-to-hire-nbsp\" class=\"wp-block-heading\">What to consider when deciding who to hire&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The right&nbsp;type&nbsp;of hired help depends on how long you need the support, how much control you want over the work, and what level of paperwork your business is ready to take on.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td rowspan=\"2\"><strong>Consideration<\/strong>&nbsp;<\/td><td rowspan=\"2\"><strong>Freelancer<\/strong>&nbsp;<\/td><td rowspan=\"2\"><strong>Contractor<\/strong>&nbsp;<\/td><td colspan=\"2\"><strong>Employee<\/strong>&nbsp;&nbsp;<\/td><\/tr><tr><td><strong>Part-time<\/strong>&nbsp;<\/td><td><strong>Full-time<\/strong>&nbsp;<\/td><\/tr><tr><td>Employment laws&nbsp;<\/td><td>Usually not covered by employee rights, but status should be checked carefully&nbsp;<\/td><td>Usually not covered by employee&nbsp;rights, unless&nbsp;the working relationship suggests otherwise&nbsp;<\/td><td>Covered by employment law and statutory rights&nbsp;<\/td><td>Covered by employment law and statutory rights&nbsp;<\/td><\/tr><tr><td>Tax&nbsp;<\/td><td>Responsible for their own tax&nbsp;<\/td><td>Usually responsible for their own tax, depending on how they are engaged&nbsp;<\/td><td>Employer&nbsp;deducts&nbsp;PAYE tax through payroll&nbsp;<\/td><td>Employer&nbsp;deducts&nbsp;PAYE tax through payroll&nbsp;<\/td><\/tr><tr><td>National Insurance contributions&nbsp;<\/td><td>Pays&nbsp;their own National Insurance contributions&nbsp;<\/td><td>Usually&nbsp;pays&nbsp;their own National Insurance contributions, depending on the arrangement&nbsp;<\/td><td>Employer&nbsp;deducts&nbsp;employee&nbsp;National Insurance contributions&nbsp;and pays&nbsp;employer&nbsp;contributions&nbsp;where&nbsp;required&nbsp;<\/td><td>Employer deducts employee&nbsp;National Insurance contributions&nbsp;and pays employer&nbsp;contributions&nbsp;where&nbsp;required&nbsp;<\/td><\/tr><tr><td>Employee benefits&nbsp;<\/td><td>No automatic right to employee benefits such as sick pay, holiday&nbsp;pay,&nbsp;or pensions&nbsp;<\/td><td>No automatic right to employee&nbsp;benefits, unless&nbsp;their status or arrangement gives them&nbsp;additional&nbsp;rights&nbsp;<\/td><td>Entitled to relevant employee benefits, usually on a pro rata basis&nbsp;<\/td><td>Entitled to full relevant employee benefits&nbsp;<\/td><\/tr><tr><td>Contracts&nbsp;<\/td><td>Usually works under a contract for services covering scope,&nbsp;fees,&nbsp;and deadlines&nbsp;<\/td><td>Usually&nbsp;works&nbsp;under a project-based or fixed-term contract&nbsp;<\/td><td>Works under an employment contract or written statement of employment particulars&nbsp;<\/td><td>Works under an employment contract or written statement of employment particulars&nbsp;<\/td><\/tr><tr><td>Job security&nbsp;<\/td><td>Typically lowest, as work is usually short-term or project-based&nbsp;<\/td><td>More predictable for the length of the&nbsp;contract, but&nbsp;usually ends when the project does&nbsp;<\/td><td>More stable than freelance or contract work, but with fewer hours than a full-time role&nbsp;<\/td><td>Usually offers the most stability because the role is ongoing&nbsp;<\/td><\/tr><tr><td>Work environment&nbsp;<\/td><td>Usually&nbsp;chooses&nbsp;where they work and often&nbsp;works&nbsp;remotely&nbsp;<\/td><td>Works according to the location and working arrangements agreed in the contract&nbsp;<\/td><td>Works where you need them to, for agreed part-time hours&nbsp;<\/td><td>Works where you need them to, usually for set full-time hours&nbsp;<\/td><\/tr><tr><td>Equipment&nbsp;<\/td><td>Usually&nbsp;provides&nbsp;their own equipment&nbsp;<\/td><td>Usually&nbsp;provides&nbsp;their own equipment, although you may need to provide specific tools or access&nbsp;<\/td><td>Employer&nbsp;usually provides&nbsp;the equipment needed to do the job&nbsp;<\/td><td>Employer&nbsp;usually provides&nbsp;the equipment needed to do the job&nbsp;<\/td><\/tr><tr><td>Payroll&nbsp;<\/td><td>Invoices your business for the agreed work&nbsp;<\/td><td>Invoices&nbsp;your&nbsp;business&nbsp;or&nbsp;is paid through an agency or umbrella company&nbsp;<\/td><td>Must be included on payroll&nbsp;<\/td><td>Must be included on payroll&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Think about your reasons for hiring.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Is there a skills gap? Is your business going in a different direction? Is it growing?&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Chaplin, at IR35&nbsp;Shield,&nbsp;suggests: \u201cIs the requirement for an individual to provide skills on an ongoing basis for fixed hours per week or month or for a one-off project that needs completing? If&nbsp;it\u2019s&nbsp;the former, then the firm needs an employee.\u201d&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here\u2019s&nbsp;a checklist of&nbsp;additional&nbsp;points to consider when hiring:<\/p>\n\n\n\n<h3 id=\"h-employment-laws\" class=\"wp-block-heading\">Employment laws<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Freelancers and contractors normally&nbsp;don\u2019t&nbsp;have any rights under employment law. Employees have statutory rights, such as holiday pay and auto-enrolment pensions (if they\u2019re&nbsp;eligible).&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">An employee might be the best&nbsp;option&nbsp;if you need the stability of someone to work with you long-term.&nbsp;<\/p>\n\n\n\n<h3 id=\"h-tax\" class=\"wp-block-heading\">Tax<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">You\u2019re&nbsp;responsible for deducting PAYE&nbsp;tax&nbsp;for your employees. Freelancers and contractors&nbsp;are responsible for&nbsp;paying their own&nbsp;tax.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You might consider hiring a freelancer or a contractor if you want to be free of the admin burden that comes with deducting tax.&nbsp;<\/p>\n\n\n\n<h3 id=\"h-national-insurance-contributions\" class=\"wp-block-heading\">National Insurance contributions<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Freelancers&nbsp;are responsible for&nbsp;paying Class 2 and Class 4 National Insurance&nbsp;Contributions (NICs). Contractors also make their own NICs.&nbsp;You\u2019re&nbsp;required to pay Class 1 for your employees.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Freelancers and contractors are the better choice if you would prefer not to deal with deducting NICs.<\/p>\n\n\n\n<h3 id=\"h-employee-benefits\" class=\"wp-block-heading\">Employee benefits<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Freelancers and contractors have no rights to employee benefits, such as sick pay or pensions.&nbsp;You\u2019re&nbsp;required to provide employees with benefits, such as holiday pay and maternity\/paternity pay.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Hiring a freelancer could be the smart choice if you&nbsp;don\u2019t&nbsp;have the budget for employee benefits.<\/p>\n\n\n\n<h3 id=\"h-contracts\" class=\"wp-block-heading\">Contracts<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The contract for freelancers normally outlines the scope of work,&nbsp;duration,&nbsp;and how much&nbsp;you\u2019ll&nbsp;pay.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You can either provide contractors with a project-based or fixed-term contract.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Employees have a detailed employment contract, which outlines their responsibilities, rights, and terms and conditions.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If&nbsp;you\u2019re&nbsp;looking for flexibility without the legal burden, then hiring a freelancer or a contractor is&nbsp;a good choice.&nbsp;<\/p>\n\n\n\n<h3 id=\"h-job-security\" class=\"wp-block-heading\">Job security<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Freelancers usually have the least job security because they are hired for specific projects or short-term support. Contractors may have more predictable work for the length of a fixed-term contract, but that security usually ends when the project does.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"> Employees&nbsp;generally have&nbsp;the most stability because they work for the business on an ongoing basis and have employment rights that protect them if the role changes or ends.<\/p>\n\n\n\n<h3 id=\"h-work-environment-on-site-remote-nbsp-or-hybrid\" class=\"wp-block-heading\">Work environment (on-site, remote,&nbsp;or hybrid)<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Freelancers usually have the most control over when and where they work, so they often work remotely and manage their own schedules.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Contractors work according to the terms agreed in the contract, which may include set locations,&nbsp;deadlines,&nbsp;or working arrangements.&nbsp;Employees work wherever you need them to.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Employees could be your best bet if you want a degree of control over the work and where the work is done.<\/p>\n\n\n\n<h3 id=\"h-equipment-nbsp\" class=\"wp-block-heading\">Equipment&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Freelancers and contractors use their own equipment. However, you may need to provide specific equipment to contractors.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You\u2019re&nbsp;responsible for making sure employees have all the necessary equipment they need to do their jobs. Freelancers provide the best value for money in terms of equipment costs.&nbsp;<\/p>\n\n\n\n<h3 id=\"h-payroll\" class=\"wp-block-heading\">Payroll<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Freelancers and contractors produce an invoice detailing the amount you&nbsp;have to&nbsp;pay them (the rate would have been agreed on beforehand).&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You need to provide&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/payroll-software\/\" target=\"_blank\" rel=\"noreferrer noopener\">payroll management<\/a>&nbsp;for your employees. You might want to think about using freelancers and contractors if you want a hands-off approach to payroll.<\/p>\n\n\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">How to attract, engage and keep great people<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p><!-- wp:paragraph --><\/p>\n<p class=\"\">Discover how to find and retain the best talent so your business can keep growing and thriving.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-a847ddcb-db84-4257-a852-4bfd46e34acb\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Download your free guide<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2024\/04\/GettyImages-1004712242-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2024\/04\/GettyImages-1004712242-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<h2 id=\"h-hiring-nbsp-employees-nbsp-contractors-nbsp-or-freelancers-your-decision\" class=\"wp-block-heading\">Hiring&nbsp;employees,&nbsp;contractors,&nbsp;or freelancers: Your decision<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Deciding whether to hire a freelancer, contractor,&nbsp;or employee depends on your company\u2019s needs,&nbsp;budget,&nbsp;and long-term&nbsp;objectives.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Freelancers offer dedicated skills and&nbsp;optimal&nbsp;flexibility,&nbsp;contractors provide high-level&nbsp;expertise&nbsp;for certain projects, and employees bring stability and commitment.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But combining freelancers, contractors, and employees may be the smartest way to position&nbsp;your&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/set-business-up-for-success-new-year\/\" target=\"_blank\" rel=\"noreferrer noopener\">business for success<\/a>.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe optimal solution often involves strategically combining permanent employees with flexible talent,\u201d says&nbsp;Chaplin.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Bell&nbsp;agrees, adding, \u201cA mix of all three can provide flexibility while ensuring compliance with HMRC rules.\u201d<\/p>\n\n\n\n<h2 id=\"h-frequently-asked-questions\" class=\"wp-block-heading\">Frequently asked questions<\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1785922608857\"><strong class=\"schema-faq-question\">Can I hire\u00a0a freelancer and later make them an employee?\u00a0<\/strong> <p class=\"schema-faq-answer\">Yes. Many businesses start by hiring a freelancer for a specific project and later offer them a permanent role. This can be a useful way to assess their skills and cultural fit before committing to employment. If the relationship changes from project-based work to regular hours under your direction, you should review their employment status and issue an employment contract if they become an employee.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1785922615816\"><strong class=\"schema-faq-question\">Can a freelancer or contractor work exclusively for my business?\u00a0<\/strong> <p class=\"schema-faq-answer\">Yes, but doing so can increase the risk that they may be viewed as an employee\u00a0if other employment-like factors are also present. Genuine freelancers and contractors often have multiple clients and\u00a0maintain\u00a0independence over how they deliver their work. If exclusivity is important, seek advice on the implications for employment status.\u00a0<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1785922627137\"><strong class=\"schema-faq-question\">Can I hire someone from outside the UK as a freelancer or contractor?\u00a0<\/strong> <p class=\"schema-faq-answer\">Yes. Many businesses hire overseas freelancers and contractors for specialised projects. However, you should consider payment arrangements, tax obligations, data protection requirements, and any legal rules that apply in the worker&#8217;s country. Professional advice may be needed for long-term arrangements.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1785922638624\"><strong class=\"schema-faq-question\">Can I have employees, contractors, and freelancers at the same time?\u00a0<\/strong> <p class=\"schema-faq-answer\">Yes. Many growing businesses use a blended workforce. Employees provide long-term stability and institutional knowledge, while contractors and freelancers offer flexibility and specialist\u00a0expertise\u00a0when needed. Using a combination of all three can help businesses scale efficiently while managing costs.\u00a0<\/p> <\/div> <\/div>\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Join more than 500,000 UK readers and get the best business admin strategies and tactics, as well as actionable advice to help your company thrive, in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-b1a63862-3fa0-4a5e-bb67-c76b88bbc6b8\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1073797282-1-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1073797282-1-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n<section class=\"more-topics alignfull has-grey-light-background-color wp-block-sage-post-topics\">\n\t<div class=\"container\">\n\t\t<div class=\"row\">\n\t\t\t<div class=\"col col-12 col-lg-4\">\n\t\t\t\t<h3 class=\"more-topics__title h2\">Browse more topics from this article<\/h3>\n\t\t\t<\/div>\n\t\t\t<div class=\"col col-12 col-lg-8\">\n\t\t\t\t<ul class=\"post-tags__list\">\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/freelancers\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tFreelancers\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/grow-business\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tHow to grow your business\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/recruit\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tHow to recruit people\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/hr-process\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tHR processes for small businesses\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/hr-payroll-benefits\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tHR, payroll and benefits\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/section>\n\n\n<div class=\"alignfull wp-block-sage-related-posts\">\n\t<section class=\"related-posts card-grid has-dark-background-color\">\n\t<div class=\"container\">\n\t\t\t\t\t<div class=\"row\">\n\t\t\t\t<div class=\"col\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--featured h1\">Explore more wisdom<\/h2>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\n\t\t\t<div class=\"row related-posts__featured\">\n\t\t\t\t<div class=\"col card-grid__item\">\n\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-0 post-5340 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-freelancers tag-start-business tag-tax business_type-small-business card-post--is-clickable\"\n>\n\t<div class=\"card-post__media-wrapper\">\n\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1064\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2017\/12\/GettyImages-645425511_super-1064x810.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2017\/12\/GettyImages-645425511_super-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2017\/12\/GettyImages-645425511_super-768x585.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2017\/12\/GettyImages-645425511_super-1064x810.jpg 1064w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\t<\/div>\n\n\t<div class=\"card-post__content\">\n\t\t\t\t\t<div class=\"card-post__label\">Recommended<\/div>\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-09-14T15:44:07+01:00\">14 September, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">11 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h3\">\n\t\t\t\t\t\t\t<a\n\t\t\t\t\tclass=\"card-post__title-link\"\n\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/manage-your-accounts-sole-trader\/\"\n\t\t\t\t>\n\t\t\t\n\t\t\tHow to manage your accounts and bookkeeping as a sole trader\n\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/p>\n\n\t\t\n\t\t\t\t\t<p class=\"card-post__description\">\n\t\t\t\tWant to know how to manage your accounts while you focus on your business as a sole trader? This in-depth guide offers some top tips for you.\t\t\t<\/p>\n\t\t\n\t\t\t<\/div>\n\n\t<\/article>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\n\t\t\t\t\t<div class=\"row related-posts__non-featured\">\n\t\t\t\t<div class=\"col col-12\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--more h4\">More on this Topic<\/h2>\n\t\t\t\t<\/div>\n\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-1 post-2229 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters category-strategy-legal-operations tag-bookkeeping tag-business-finances tag-cash-flow tag-freelancers tag-start-business tag-make-receive-payments tag-tax tag-vat business_type-small-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/the-ultimate-guide-to-basic-business-accounting\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1267191201_updated-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1267191201_updated-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1267191201_updated-768x432.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1267191201_updated-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-09-14T15:43:42+01:00\">14 September, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">18 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tThe ultimate guide to small business accounting and bookkeeping\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-2 post-1578 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-bookkeeping tag-freelancers business_type-small-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/good-bookkeeping-how-to-keep-financial-records\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2017\/08\/JeremyCorner_GL_261115-491-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2017\/08\/JeremyCorner_GL_261115-491-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2017\/08\/JeremyCorner_GL_261115-491-768x511.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2017\/08\/JeremyCorner_GL_261115-491.jpg 999w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-09-14T15:43:06+01:00\">14 September, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">5 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tGood bookkeeping: How to keep financial records\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-3 post-8984 post type-post status-publish format-standard has-post-thumbnail hentry category-strategy-legal-operations tag-bookkeeping tag-freelancers tag-start-business business_type-small-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/small-business-administration-easy-guide\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2021\/04\/iStock-495467994-1-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2021\/04\/iStock-495467994-1-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2021\/04\/iStock-495467994-1-768x512.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2021\/04\/iStock-495467994-1-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-09-14T15:42:39+01:00\">14 September, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">8 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tSmall business administration: Your easy guide to managing your admin\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-4 post-32157 post type-post status-publish format-standard has-post-thumbnail hentry category-people-leadership category-trends-insights tag-employee-benefits tag-employee-engagement tag-employee-retention tag-recruit tag-hr-processes-medium-businesses tag-hr-process tag-hr-payroll-benefits tag-looking-after-your-employees business_type-small-business business_type-medium-sized-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/what-is-employee-experience\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/09\/HPF_Static_Danielle_Option1-Final-684x384.jpeg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/09\/HPF_Static_Danielle_Option1-Final-684x384.jpeg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/09\/HPF_Static_Danielle_Option1-Final-768x384.jpeg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/09\/HPF_Static_Danielle_Option1-Final-1440x720.jpeg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-09-04T12:45:26+01:00\">4 September, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">9 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tWhat is employee experience and why is HR struggling to deliver it?\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n<\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Undecided about whether to hire a freelancer, contractor or employee? Read on to find out who would be the best fit for your business.<\/p>\n","protected":false},"author":1863,"featured_media":16287,"menu_order":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_yoast_wpseo_is_cornerstone":"","_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_opengraph-title":"","_yoast_wpseo_opengraph-description":"","_yoast_wpseo_opengraph-image":"","_yoast_wpseo_opengraph-image-id":"","_yoast_wpseo_twitter-title":"","_yoast_wpseo_twitter-description":"","_yoast_wpseo_twitter-image":"","_yoast_wpseo_twitter-image-id":"","_yoast_wpseo_schema_page_type":"","_yoast_wpseo_schema_article_type":"","_sage_video":false,"_yoast_wpseo_focuskeywords":"","_yoast_wpseo_keywordsynonyms":"","_yoast_wpseo_primary_category":"10","post_featured_image_hide":false,"sage_hide_published_date":false,"sage_hide_read_time":false,"sage_hide_share_buttons":false,"_pwl_sage_podcast_buzzsprout_src":"","footnotes":""},"categories":[10],"tags":[776,15,35,41,234],"business_type":[4],"lilypad":[],"context":[],"industry":[],"persona":[69,73,74],"imagine_tag":[92,217,109,218],"coauthors":[387],"class_list":["post-20920","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-people-leadership","tag-freelancers","tag-grow-business","tag-recruit","tag-hr-process","tag-hr-payroll-benefits","business_type-small-business"],"sage_meta":{"region":"en-gb","author_name":"Karan Johnson","featured_image":"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1421562922.jpg","imagine_tags":{"92":"HR and Payroll","217":"HR processes","109":"Small business","218":"Top HR resources"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice UK","distributor_original_site_url":"https:\/\/www.sage.com\/en-gb\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/20920","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/users\/1863"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/comments?post=20920"}],"version-history":[{"count":4,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/20920\/revisions"}],"predecessor-version":[{"id":32215,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/20920\/revisions\/32215"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media\/16287"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media?parent=20920"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/categories?post=20920"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/tags?post=20920"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/business_type?post=20920"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/lilypad?post=20920"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/context?post=20920"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/industry?post=20920"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/persona?post=20920"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/imagine_tag?post=20920"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/coauthors?post=20920"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}