There comes a moment when you can't do it all yourself. The orders are piling up, you're working every evening, and you know it's time to hire.
It's also a moment that scares a lot of small business owners. Before I ran my own shop, I worked in HR, so I've seen both sides. Here's the checklist I'd give any maker hiring for the first time.
1. Know the minimum pay for 2026
These rates rise every April, so budget for next year's increase now.
2. Work out the real cost, not just the wage
As an employer you pay National Insurance on top of the wage: 15% on earnings above £5,000 a year in 2026-27. The good news is that most small employers can claim the Employment Allowance, which reduces that bill by up to £10,500 a year (IRIS). A limited company whose only employee is its sole director can't claim it.
You'll also need employer's liability insurance, and workplace pension contributions if your employee qualifies.
3. Register as an employer with HMRC
You must register as an employer before your first payday and run payroll through HMRC-recognised software. Many free or low-cost payroll tools exist for businesses with a handful of staff.
4. Check their right to work
Before the person starts, you must check they have the right to work in the UK and keep a record of the check. Do this for everyone, every time, to avoid discrimination.
5. Give a written statement from day one
Every employee must receive a written statement of the main terms of their job (pay, hours, holiday, notice) on or before their first day. A clear contract protects you both.
6. Set up their pension
If your employee is aged 22 to State Pension age and earns over £10,000 a year, you must automatically enrol them into a workplace pension and contribute. Even if they earn less, they may have the right to join.
7. Plan the first week
The legal checklist gets someone through the door. A good first week keeps them. Prepare their training, show them how you like things done, and explain the why behind your standards. Small businesses rarely lose staff over pay alone; they lose them over unclear expectations.
Your next step
Hiring is where your business stops being just you. The Good Manager Guide: How to Hire, Lead and Manage Staff in a Small Business (UK & Scotland, 2026) takes you from writing your first job advert to handling difficult conversations, with template contracts, interview questions and an onboarding plan.
Get The Good Manager Guide for £19.99
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This article is general information, not legal advice. Rates checked October 2026 and change every April.