Learn of the difference between employees and freelancers/self-employed contractors and how HMRC and the law view the relationship. Read the article now!
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Employee or freelancer?
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Employee or freelancer?Employee or freelancer?
Thursday, 24 April 2014 09:42
Suzanne Dibble
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So when is someone who isn’t an employee really an employee?
No it’s not a riddle – it’s a problem I see time and time again with many small business owners.
You may be one of them?
If you have engaged someone in your business and thought “I don’t want the hassle of employing someone, I’ll take on my assistant
as a freelancer/associate/consultant/contractor etc” – then you need to pay close attention.
Regardless of what you label the working relationship, the law and HMRC look behind that to the true nature of the relationship.
And if it turns out that your ‘freelancer’ (or whatever you have called them) is actually an employee, then you will be liable for
backdated employer tax and penalties and risk employment related claims including unfair dismissal and discrimination.
So you need to get it right.
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