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Yes, sole traders can have employees as long as they remain the sole owner of the business. If you're a sole trader and you want to hire employees, you won't need to set up a limited company. However, you'll need to register as an employer with HMRC and submit a PAYE registration form.
If you're wondering if a sole trader can have employees, the answer is yes ? but you'll need to ensure that you set up your payroll correctly before they can start working.