In recent years, growth in self‑employment in the UK has been driven by younger age groups: people aged 25‑34 now account for over 20% of all self‑employed workers.
That shift reflects changing work preferences: more people want autonomy, flexible hours, or running their own business. But when you’re self‑employed and considering skills training or a route like an apprenticeship, a lot of people wonder: can an apprentice be self-employed in the UK? Or can a self‑employed person employ an apprentice?
The rules around apprenticeship eligibility, funding, employment status, and tax can get murky, so let’s dig into what’s allowed, what isn’t, what myths persist, and where exceptions might apply.
Can an apprentice be self‑employed in the UK?
No. Legally speaking, apprenticeships are structured so that the apprentice is an employee, not self‑employed. Being self‑employed, a sole trader or contractor invoicing independently doesn’t meet the legal requirements for an apprenticeship. The apprenticeship system demands a contract of employment from day one, off‑the‑job training, supervision, minimum wage rules, etc.
The Apprenticeship Funding Rules in England explicitly exclude individuals who are self‑employed (as sole traders) from being eligible for funding as apprentices. The funding and regulatory framework assumes that the apprentice is under an employer who bears responsibilities (employment contract, pay via PAYE, oversight).
So, a person cannot simultaneously hold the status of self‑employed (running their own business as sole trader) and be a funded apprentice under the standard statutory scheme.
Can a self‑employed person take on an apprentice?
While someone who is self‑employed cannot be a funded apprentice, self‑employment doesn’t stop you from being an employer of apprentices. If you are a sole trader, freelancer, or have your own business, you can employ someone as an apprentice, so long as you:
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Register as an employer with HMRC, set up PAYE to pay the apprentice as an employee.
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Provide a written contract of employment.
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Comply with minimum wage or apprentice wage rules.
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Ensure off‑the‑job apprenticeship training is arranged via an approved training provider.
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Meet all legal obligations (insurance, health & safety, etc.).
This means, self-employed taking on an apprentice is possible, provided you meet the employer side’s obligations. Many sole traders do exactly this.
Funding & tax implications for self employed
Whether someone is classed as employed or self-employed makes a big difference when it comes to apprenticeships. For starters, government funding is only available if the apprentice is officially employed under a proper apprenticeship contract. Self-employed individuals don’t qualify for this funding.
On the tax side, if you're taking on an apprentice, you must run PAYE, which is deducting income tax and National Insurance, and reporting to HMRC. Trying to treat an apprentice as self-employed not only breaks the rules but could lead to penalties or backpay if HMRC reclassifies them.
Apprentices are also entitled to employment rights like paid leave, health and safety protections, and the minimum apprenticeship wage, none of which apply to someone officially self-employed.
Exceptions for self employed apprentices
While the rules are strict, there are a few cases worth knowing about. In some situations, like redundancy or elite sports programmes, alternative apprenticeship routes may apply, but even then, the apprentice usually still needs to be employed.
Apprenticeship Training Agencies are another workaround. They act as the apprentice’s legal employer, even if the apprentice works day-to-day in a more flexible setting. For company directors wanting to do an apprenticeship, things get tricky, if they don’t have a separate line manager or are effectively managing themselves, they may not qualify for funding.
And finally, private training is always an option. A self-employed person can still pay for training out of pocket, but it won’t be classed as a formal apprenticeship or come with any of the funding or legal protections.
FAQs: Self-employment and apprenticeships in the UK
Can I switch from employed to self-employed during an apprenticeship?
No, if you become self-employed during your apprenticeship, you’re likely to lose eligibility for funding. Apprentices must remain employed throughout the duration of the apprenticeship. If your employment ends and you become a sole trader or contractor, your training provider may have to withdraw you from the programme.
Can I hire an apprentice as a freelancer or subcontractor?
No. You can’t call someone an “apprentice” if you’re paying them as a subcontractor. True apprentices must be employees, paid via PAYE, with the correct contract and training in place. Calling a freelancer an “apprentice” won’t meet legal or funding requirements, and could create compliance risks with HMRC and your training provider.
Can a partnership or small business take on an apprentice?
Yes. Small businesses, including partnerships and sole traders, can employ apprentices, as long as one of the partners is the registered employer and handles PAYE, contracts, insurance, etc. You don’t need to be a limited company to take someone on.
What if I want to do an apprenticeship but I’m already self-employed?
You’d need to pause or end your self-employment and find an employer willing to take you on as an apprentice. The government doesn’t fund apprenticeships for people who are self-employed, even if you're doing the same kind of work. Your best route would be to transition into employment with a company that offers apprenticeships in your trade or sector.
Can I call someone an “apprentice” if I’m just training them informally?
Not officially. The term “apprentice” has a legal definition in the UK. To use it in a formal or funded context, there must be:
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An approved apprenticeship standard or framework,
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A registered training provider,
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A contract of employment,
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And a structured training plan.
Training someone informally is great, but unless it ticks those boxes, it’s not an apprenticeship in the eyes of the law or funding bodies.
Learn more: Traineeship vs Apprenticeship: Which is the Best Choice for Your Business?
Are there any sectors where the rules are different?
No, the employment requirement applies across all sectors. Whether it’s hairdressing, plumbing, software development, or media, apprentices must be employees. However, specific apprenticeship standards may have additional criteria around supervision, hours, or qualifications, so it’s worth checking with the training provider.
Choose Total People as your apprenticeship provider
Navigating the rules around self-employment and apprenticeships can be confusing, but you don’t have to do it alone. Whether you're a small business looking to take on an apprentice or someone exploring hands-on training to boost your career, Total People can guide you through every step of the apprenticeship training process.
We’ll help you understand what’s possible, ensure you meet the legal and funding requirements, and match you with the right training for your goals.
Get in touch today to speak to our team, explore our apprenticeship programmes, and take the next step with confidence.
