For any sole trader in West Sussex, hiring your first employee is the scariest jump you will make.

You move from keeping 100% of the money to having a fixed overhead that leaves your bank account on the last Friday of every month, whether you’ve had a good month or a bad one.

And let’s be honest: in February 2026, that jump looks steeper than ever.

With the National Living Wage set to rise again in April (expected to increase significantly for those aged 21+), and changes to Employer National Insurance on the horizon, the cost of "just getting some help" is going up.

So, how do you know if you are actually ready?

At Curve Accountancy, we use a simple financial rule of thumb with our clients. It’s called The Rule of 3.

What is The Rule of 3?

The mistake most business owners make is thinking: "If I pay them £25,000, they just need to generate £25,000 in sales to cover their cost."

Wrong. If they only cover their salary, you are losing money.

The "Rule of 3" is a useful heuristic we use for planning (not a legal requirement). It suggests that for an employee to be viable, they typically need to help you generate revenue equal to three times their gross salary.

1. 1/3 covers their Cost: Salary, National Insurance, Pension, Software licenses, Laptop.
2. 1/3 covers Overheads: Marketing to find the work they do, office rent in Manor Royal, insurance, and admin.
3. 1/3 is Profit: The reason you took the risk of hiring them in the first place.

If you pay someone £30k, they ideally need to facilitate £90k of value. If they only generate £40k, they might be costing you more than they are worth.

The Real Cost of a Crawley Employee in 2026

Let’s run the numbers for a full-time junior employee starting in April 2026.

Please note: These figures are illustrative based on projected 2026 rates. Actual costs depend on final government thresholds and your specific pension setup.

The Salary: If we assume a salary based on the projected National Living Wage for a standard 37.5-hour week, you might be looking at a gross salary of roughly £24,800.

The Hidden Costs (Tax & Pension) This is where the costs add up.

• Employer National Insurance: This is charged on earnings above the Secondary Threshold. Based on expected rates for 2026, the NI bill on that salary could be roughly £2,900+.
• Pension: You must generally contribute at least 3% of qualifying earnings into a workplace pension. That adds another £550+ to the bill.

Total Cost to Business: Roughly £28,000 - £29,000.

The Golden Ticket: Employment Allowance

Before you panic, there is good news for small businesses.

The Employment Allowance allows eligible employers to reduce their annual Employer National Insurance liability up to a set annual limit.

What this means for you: If you are hiring your first employee, many businesses can fully offset the Employer NI costs on that first hire, bringing the total cost back down closer to the gross salary.

(Crucial Check: Eligibility rules apply. Notably, many single-director limited companies with no other employees cannot claim this allowance. Always check your status with us first.)

The Revenue Target

So, using our Rule of 3, let’s look at the target.

If the salary is roughly £25,000:

• x3 Target: You are looking for £75,000 of additional revenue capacity.

This doesn't mean they have to sell £75k directly. It means their presence must allow the business to generate that.

• The Van Driver: If you hire a driver, does it free you up to do £75k more in install work?
• The Admin Assistant: If you hire an admin, does it stop you doing paperwork so you can bill 3 more days a week?

If the answer is "No," you might not be ready to hire—or you might need to raise your prices first to make the maths work.

A Note on the Crawley Market

It is also worth remembering that Crawley is typically a competitive labour market.

With Gatwick Airport and the industrial estates in Manor Royal nearby, local businesses often compete for talent. In practice, you may find you need to pay above the statutory minimum to attract reliable staff in this area.

If you need to offer £14.00 an hour to get the right person, your "Rule of 3" revenue target moves up accordingly.

The Verdict: Don't hire just because you are busy. Hire because the numbers work.

If you are thinking of taking the plunge, don't guess the costs. We can run a full "New Hire Illustration" for you, showing exactly what cash needs to be in the bank every month to pay them safely.

Thinking of hiring? Let’s run the numbers first.

Book your free consultation with Curve.