Self-Employment Rules Could Change

Self-employment rules could change: what businesses need to know

Businesses that use freelancers, contractors and other self-employed workers may need to review their arrangements as the Government considers changes aimed at tackling bogus self-employment and making employment status clearer.

Bogus self-employment can arise where someone is described as self-employed, but the reality of their working relationship suggests they may actually qualify for employment rights.

Importantly, the label used in a contract does not necessarily determine someone's legal status. Factors such as how much control the business has, whether the individual can work for other clients, and how much freedom they have over when and how they work can all be relevant.

What should businesses do?

Businesses that regularly use self-employed contractors and freelancers may want to review both their contracts and day-to-day working arrangements.

It's also important to remember that employment status for employment rights and tax status are separate issues, so the position should be considered carefully.

If you're unsure whether your current arrangements are appropriate, our team can help you understand the potential tax, payroll and wider business implications.

Speak to Charlton Baker about your contractor or freelance arrangements and make sure your business is prepared for any future changes. Call us now on 01380 723692 or email here.