The complexities of taxation law have always been such that it can be very difficult sometimes to decide whether or not one is employed or self-employed.
The implications can be expensive both for the employer and the employee if subsequently it is found that the position was not as first thought, so it is important to examine all the factors carefully at the start to assess the position. The recent implementation of ‘IR35 Off payroll working rules’ has made the situation more complicated, and more significant if the wrong judgement is made. There is a separate IoD factsheet on IR35. This factsheet continues to give guidance on the fundamentals of self-employment.
It is for you to consider also whether you wish to claim to be self-employed; while there are certain savings arising out of being self-employed, such as lower National Insurance costs and greater tax deductibility of expenses, these have to be weighed against the loss of social security benefits, and the rights that individuals have as employees.
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