By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Start Your Business Magazine
  • Topics

    Grow, expand and leverage your business..

    Grow your start up business with our experts and industry insiders…

    Get Started

    Quick Links

    • Finance
    • Marketing
    • Technology
    • Business Books
    • Wellness
    • Interviews
    • Franchise

    Our Newsletters

    Our website stores cookies on your computer. They allow us to remember you and help personalise your experience with our site..

    Read our privacy policy for more information.
  • Trending
    TrendingShow More
    Communicate Better
    Start Your Business Start Your Business
    Majority of UK Employees Looking for a New Job
    Start Your Business Start Your Business
  • How To
    How ToShow More
    How To Start A Maintenance Business In 8 Easy Steps
    Start Your Business Start Your Business
    Tips for Running a Restaurant in the Most Efficient Way Possible
    Start Your Business Start Your Business
    Becoming self employed…
    Start Your Business Start Your Business
    Vet Start up
    Start Your Business Start Your Business
    Builder’s Growth
    Start Your Business Start Your Business
  • Agenda
    AgendaShow More
    The Positive Impact Of Bringing Nature Into The Office
    Start Your Business Start Your Business
    The Beauty and Versatility of Timber: A Guide to Using Wood in Construction and Design
    Start Your Business Start Your Business
    Could On-site Safety Hold Back Growth of the Construction Industry?
    Start Your Business Start Your Business
    5 Strategies To Attract More Customers To Your Restaurant
    Start Your Business Start Your Business
    4 Vital Safety Precautions to Take During Office Renovations
    Start Your Business Start Your Business
Reading: Employees and Contractors
Connect
Start Your Business MagazineStart Your Business Magazine
Aa
  • Contact
  • Blog
Search
  • Agenda
  • Blog
  • Finance
  • Growing
  • Marketing
  • Opportunity
  • Starting Up
  • Technology
  • Wellbeing
  • Contact
Have an existing account? Sign In
Follow US
  • RSS
  • Terms And Conditions
  • Privacy Policy
  • Contact
  • Licensing
Copyright © 2014-2023 Ruby Theme Ltd. All Rights Reserved.

Employees and Contractors

Start Your Business
agenda Finance
Share
3 Min Read

The opportunities and pitfalls of employees and contractors

When Her Majesty’s Revenue Commissioners are disappointed, it usually means that a great many people are happy.

HMRC is recently said it is “disappointed,” and is considering an appeal, after a tribunal judge ruled that TV personality Lorraine Kelly was not an employee but was self-employed.

In 2016, Ms Kelly was landed with a £1.2 million bill for tax and PRSI when HMRC found that she was an employee of ITV, and not a freelance contractor, as she had maintained.

Judge Jennifer Dean found Ms Kelly’s contractual relationship with ITV “was a contract for services and not that of employer and employee”. It was noted that Ms Kelly remained free to carry out work elsewhere, and she did not receive sick pay, holiday entitlements or other benefits which employees typically receive.

The question of whether you are an employee or a contractor is not just one which affects television personalities. Self-employed building subcontractors, who are working largely for a single contractor on a building site, often enter into that grey area, where the HMRC could argue that they have become an employee.

As the gig economy grows, an ever-greater number of professionals now need to consider whether they are in fact contractors or employees.

Those employing freelance staff also need to be aware that workers whom they are treating as contractors can gain employment rights, in certain circumstances. If employers fail to recognise this, they will be breaking the law.

HMRC’s decision as to whether a worker is an employee can have a big impact on tax liabilities, and a worker’s ability to write off expenses against tax. Even if your contract specifically says that you are not an employee, the HMRC will nonetheless look at the wider picture.

UK government advice says that a worker is likely to be self-employed if most of the following apply:

– they put in bids or give quotes to get work

– they’re not under direct supervision when working

– they submit invoices for the work they’ve done

– they’re responsible for paying their own National Insurance and tax

– they don’t get holiday or sick pay when they’re not working

– they operate under a contract (sometimes known as a ‘contract for services’ or ‘consultancy agreement’) that uses terms like ‘self-employed’, ‘consultant’ or an ‘independent contractor’

However, the position is rarely clear-cut. Both workers and employers would benefit from a better understanding of the nuances of the definitions used to determine whether a worker is an employee or a contractor.

TAGGED: header

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.

By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
Start Your Business March 28, 2019
Share this Article
Twitter LinkedIn Reddit Email Copy Link
  • RSS
  • Terms And Conditions
  • Privacy Policy
  • Contact
  • Licensing

Get the latest from us delivered straight to your inbox

Start Your Business Magazine: The Ultimate Business Start Up Guide provides information advice and guidance for entrepreneurs and new business start ups. Get the latest from us delivered directly to your inbox.

Our website stores cookies on your computer. They allow us to remember you and help personalize your experience with our site..

Read our privacy policy for more information.

Copyright 2023 Gambit Interactive Media Limited – All Rights Reserved.

Manage Cookie Consent
We use technologies like cookies to store and/or access device information. Cookies are used for ads personalisation We do this to improve browsing experience as well as show personalized ads. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage vendors Read more about these purposes
View preferences
{title} {title} {title}
Join Us!

Sign up to our free newsletter and never miss a hot topic!

Zero spam, Unsubscribe at any time.
Go to mobile version
Welcome Back!

Sign in to your account

Lost your password?