Free guide to starting a UK plant hire companyUpdated October 2026 · Browse all guides
Plant Hire Start-Up Guide
Startup checklist

Staffing

Using self-employed operators and subcontractors

Using self-employed plant operators and drivers: employment status, CIS as a contractor, contracts, competence and insurance checks, and when to employ instead.

Guide specPHSUG-56
Read time6 min
LevelIntermediate
Status test5 factors
UpdatedOct 2026

Key takeaways

  • Self-employed operators and drivers give flexibility, but status depends on the real relationship.
  • If you pay subcontracted operators for construction work, you're a CIS contractor.
  • Check cards, insurance and right to work before they start.
  • Use a written agreement that matches how they actually work.
  • When someone works only for you, on your terms, every week, employment is often the right answer.

Why use subcontractors

  • Flexible capacity for busy periods.
  • No guaranteed hours to fund in quiet months.
  • Access to specialist operators for occasional jobs.

Employment status

Whether someone is self-employed depends on the facts, not the label. HMRC and tribunals look at things like:

FactorPoints to self-employmentPoints to employment
ControlThey decide how to do the workYou direct how, when and where
SubstitutionThey can send someone elseMust do the work personally
ObligationCan turn work downExpected to take work offered
Financial riskOwn tools, insurance, can make a lossYou provide everything
IntegrationIn business on their own account, several clientsPart of your team, your uniform

HMRC's online status tool is a useful starting point. Getting status wrong can mean backdated PAYE, National Insurance and employment rights claims.

CIS

  1. 01

    Register as a contractor

    With HMRC, if you pay subcontractors for construction work.

  2. 02

    Verify each subcontractor

    Through HMRC, to find the deduction rate.

  3. 03

    Deduct and pay

    20% registered, 30% unregistered, nothing for gross payment status.

  4. 04

    Monthly return

    By the 19th of each month, with statements to subcontractors.

Contracts

  • Services, rates and payment terms.
  • Their responsibility for insurance, tax and their own costs.
  • Health and safety duties and site rules.
  • Right of substitution, where genuine.
  • Confidentiality and customer non-solicitation, kept reasonable.

Competence and insurance checks

  • CPCS or NPORS card in the right categories; see CPCS and NPORS.
  • Driving licence categories for drivers.
  • Public liability insurance, if they're truly in business.
  • Right to work in the UK.
  • Your own insurer's conditions for subcontracted operators.

When to employ instead

If an operator works only for you, full-time, under your direction, using your machines, employment is usually more accurate and often more stable. See hiring your first employee.

FAQs

Common questions

Can plant operators be self-employed?
Yes, if they're genuinely in business on their own account. Status depends on control, substitution, financial risk and how they actually work, not the contract label.
Do I need to register for CIS if I use self-employed operators?
If you pay subcontractors for construction work, such as operated plant, you normally need to register as a CIS contractor, verify them and make deductions.
What checks should I do on a self-employed operator?
Operator cards in the right categories, driving licence if relevant, public liability insurance, right to work and your insurer's requirements.

This guide is general information for people setting up a plant hire business in the UK. It is not legal, tax, insurance or financial advice. Rules and thresholds change, so check current guidance on GOV.UK and take advice from an accountant, solicitor or broker before acting.