If you deduct income tax or national insurance contributions from wages of a person you employ, then you are usually their employer.  If you have used an agency to hire the person and the agency pays their national insurance contributions, the agency is the employer and you don't need to do anything.

Other indicators to whether you are an employer are as follows:-

• You have to find work for someone and can tell them what to do and how to do it, even if they are left alone to do the work.

• You provide the necessary tools for the worker to do the job.

• You pay someone on a regular basis for the time they work rather than when they have done a particular job.

• The worker is entitled to benefits, such as sick pay, maternity pay, paternity leave, etc.

• You have to find someone else to do the work if they can't do it for some reason, for example they're off sick. If they have to find someone else to do the work, for example a sub-contractor or a friend, this probably means they are self-employed.

• It is likely that you also pay them directly through the PAYE system and provide them wage slips.

If you have contractors that work full time for you we can clarify whether they are to be included, this is a grey area that if not clearly defined could cause issues down the line, but we can shed light on this for you and confirm whether you are liable.

Click here if you wish to be contacted about setting up a workplace pension