This guide focuses on self-employed contractors. Although the term ‘self-employed’ is not defined in legislation, it is generally accepted to apply to those individuals who run and manage their own business.
Businesses and individuals should be aware that a self-employed individual may be categorised as self-employed for tax purposes but be considered an ‘employee’ (or more likely a ‘worker’) under employment law and therefore entitled to certain statutory rights and protections. Further, where an individual’s services are provided to a business client via a ‘personal services company’, certain tax-related obligations will be triggered under the IR35 regime.
This guide is designed to help employers understand the relationship that they have with their self-employed contractors and highlights any legal issues that they may come across. It also includes information and key points for self-employed individuals to help them understand their employment status and rights.