Are Pub Landlords Self Employed?

There’s obviously a lot to think about when considering quitting the 9 to 5 and taking over the taps at your dream pub venue, but your employment status in your new role might not be one of the first things that springs to mind. It’s easy to get caught up in the more exciting side of your dream, creating barnstorming events, curating that perfect locally sourced menu and imagining what the locals will be like - yet it’s worth taking a moment to understand what being a pub landlord means from a business point of view.

So, if you’ve ever wondered about pub operator employment status - or if it all feels a bit confusing, don’t worry! Let’s take a moment to clear things up.

Let’s Cut To The Chase - Are Pub Landlords Self-Employed Or Not?

In most cases, yes. Pub landlords are self-employed.

If you take on a pub through one of our tenancy or lease agreements, you will be running your own independent business and will need to operate as a sole trader, partnership or limited company.

What’s The Difference Between Them?

A sole trade is where you and the business are legally the same entity, so all profits (after tax) are yours, and you are personally responsible for any losses. You will still need to file a Self-Assessment tax return every year and pay Income Tax and National Insurance on your earnings.

If there are two or more of you taking on the business together, you will be entering as a partnership. This is very similar to a sole trader and each partner will be considered self-employed. As before, that means you will each submit your own Self-Assessment tax return. The partnership itself also submits a partnership return to HMRC to report the overall profits.

A limited company is a bit different. When you operate as a limited company, you and your business are separate legal entities. You are usually the director (and possibly a shareholder) of that company and pay yourself a salary and/or dividends. So, while you’re not ‘self-employed’ in the HMRC sense of the phrase (because you’re employed by your own company), you are still an independent business owner. You’ll oversee the day-to-day running of the pub, from hiring and managing staff to making the key decisions that drive your success.

Is It Better To Be Set Up As A Sole Trader Or A Limited Company?

This is an important question and one that comes up a lot. The answer really depends on your personal circumstances, how you plan to operate and what level of risk and admin you’re comfortable with. There are pros and cons to both set-ups. Let’s consider two scenarios…

Scenario one. You’re about to take on your own pub and set yourself up as a sole trader. If you choose to operate this way, you will pay income tax on your profits (regardless of how much you take as a personal salary). You will have a personal tax-free allowance (currently £12,570 at the time of writing). Anything above this amount is taxed at 20% up to £50,270, 40% between £50,270 and £125,140 and 45% on anything over that. You will also pay Class 4 National Insurance at 6% on profits between £12,570 and £50,270 and 2% on anything higher. It's a straightforward arrangement and because there is less admin involved, it can be an appealing route when getting started.

Scenario two  sees you operating as a limited company. The company itself pays Corporation Tax on profits at a rate of 19% up to £50,000 and 25% once profits exceed £250,000 - with marginal relief applied in between.

Under this arrangement you can choose to take a salary which is deductible for Corporation Tax purposes or withdraw profits as dividends. Employers NIC’s will be due at 15% on any staff member’s salary above £5,000. Any salary or employer’s NIC will be deductible and will save Corporation Tax.

You will pay Income Tax at 20% on any salary you take above the personal tax allowance of £12,570, along with employee National Insurance contributions of 8% on earnings over that threshold.

You may wish to take profits from the company in the form of dividends, rather than a salary. While dividends are not deductible for Corporation Tax, they are subject to lower Income Tax at a basic rate of 8.75% and 33.75% for higher rate and are not subject to National Insurance. This often makes them a more tax-efficient way of drawing profits once the business is generating a steady income.

Do Tenant Vs Franchisee Roles Differ?

Yes, there is a difference between tenant vs franchisee roles. If you are interested in taking on one of our Nested or Hive franchise models, you will need to be set up as a limited company.

What If I Want To Be Employed?

If you would like to run a pub but stay employed, this would fall under Greene King’s managed pub model. In this type of arrangement, you are employed directly by Greene King to manage one of their pubs and will receive a regular salary for your work. Under this model, Greene King looks after the wider management, maintenance, and upkeep of the property, while you focus on running the pub day-to-day - leading your team, serving customers and delivering a great experience.

In Summary Then…

Starting out as a sole trader is often the simplest route, but once profits reach around £35,000 - £50,000, the potential tax benefits of becoming a limited company can make the switch worthwhile. It’s wise to consider your expected profits and long-term goals and seek advice from an accountant to help decide which structure best suits your plans. Remember too that operating as a limited company offers the added advantage of protecting your personal assets.

Would You Like More Information On Running Your Own Pub?

If you would like more information on running your own pub with us, check out our guide to running your own pub for everything you need to know, or check out the latest pubs to let in your area

The tax rates and allowances referenced reflect HMRC guidance as of October 2025 and may be subject to change.