Should I hire my first employee or use freelancers?
2 new updates·6 min read
Yes, if…
- ✓The work is steady and ongoing, not project-based
- ✓You need to set their hours, place and methods
- ✓You can cover wages plus ~20% on-costs in a slow month
No, if…
- ✕Demand is seasonal or you're still testing it
- ✕The work is clearly defined and self-managed
- ✕You can't yet absorb fixed payroll every month
The reasoning
The choice is really about control and commitment. Employees give you reliability and the right to direct the work; freelancers give you flexibility and no payroll when it's quiet.
HMRC decides which is which based on how the work happens - regular hours and your direction point to employment, whatever the contract says. Getting it wrong is expensive.
Many small firms bridge the gap: a freelancer for the busy season, then a part-time employee once the work is provably there year-round.
What’s new on this question
25 Jun 2026Employment Rights Bill adds day-one unfair-dismissal protection
14 Jun 2026National Living Wage rise confirmed for next April
30 May 2026Holiday-pay rules for irregular hours simplified
What you can do this week
- ✓Write down whether the work is steady or seasonal - honestly
- ✓Price the true cost of an employee (wage + ~20%)
- ✓If unsure, hire a freelancer for one season and measure demand
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Luca Bonura
Founder & Editor
Self-taught marketer who started selling online at 17 and went on to freelance for brands across Europe before founding Adlarion. He writes The Small Business Digest in plain English - the news he wishes he'd had when he was starting out.
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