This type of contract can be more complicated than it seems. Under IR35 regulations, if a business hires a self-employed person doing a job deemed that a paid employee should be doing, this is known as 'Self-Employment in Disguise' and if found guilty, HMRC can proceed through the courts and back date lost taxes and issues fines.

This is because the self-employed person should have been employed by your organisation.

This type of contract can be more complicated than it seems. Under IR35 regulations, if a business hires a self-employed person doing a job deemed that a paid employee should be doing, this is known as 'Self-Employment in Disguise' and if found guilty, HMRC can proceed through the courts and back date lost taxes and issues fines.

This is because the self-employed person should have been employed by your organisation.

How to avoid this issue?

• Ensure you get the person to sign a Contract of Service agreement outlining how both parties will work together.
• Whether the self-employed person is asked to do a job, get them to accept or reject a job contract offer
• Ensure the self-employed worker is qualified to do the job you are asking them to do.
• If the self-employed worker requires training, supervision or direction and control, then they are not genuinely self-employed.
• If the self-employed worker is unable to do the work or finish the job or lets you down, if you have to find a substitute, then that self-employed worker is not genuinely self-employed.
• If you have to provide the self-employed worker with tools and equipment, unless the job contract or Contract for Services outlines the terms, the self-employed worker is likely not to be genuinely self-employed.
• If the self-employed worker directs or trains your employees, they are not genuinely self-employed.
• If you make any deductions from the self-employed workers pay (unless under the construction Industry Scheme), the self -employed worker is not genuinely self-employed.

These are just a few areas HMRC can investigate you on.te a description for this tab and include information that will interest site visitors. For example if you are using tabs to show different services write about what makes this service unique. If you are using tabs to display restaurant items write about what makes a specific dish particularly worthwhile or delicious.

This type of contract can be more complicated than it seems. Under IR35 regulations, if a business hires a self-employed person doing a job deemed that a paid employee should be doing, this is known as 'Self-Employment in Disguise' and if found guilty, HMRC can proceed through the courts and back date lost taxes and issues fines.

This is because the self-employed person should have been employed by your organisation.

This type of contract can be more complicated than it seems. Under IR35 regulations, if a business hires a self-employed person doing a job deemed that a paid employee should be doing, this is known as 'Self-Employment in Disguise' and if found guilty, HMRC can proceed through the courts and back date lost taxes and issues fines.

This is because the self-employed person should have been employed by your organisation.

How to avoid this issue?

• Ensure you get the person to sign a Contract of Service agreement outlining how both parties will work together.
• Whether the self-employed person is asked to do a job, get them to accept or reject a job contract offer
• Ensure the self-employed worker is qualified to do the job you are asking them to do.
• If the self-employed worker requires training, supervision or direction and control, then they are not genuinely self-employed.
• If the self-employed worker is unable to do the work or finish the job or lets you down, if you have to find a substitute, then that self-employed worker is not genuinely self-employed.
• If you have to provide the self-employed worker with tools and equipment, unless the job contract or Contract for Services outlines the terms, the self-employed worker is likely not to be genuinely self-employed.
• If the self-employed worker directs or trains your employees, they are not genuinely self-employed.

If you make any deductions from the self-employed workers pay (unless under the construction Industry Scheme), the self -employed worker is not genuinely self-employed.

These are just a few areas HMRC can investigate you on.

This type of contract is less complicated than under self-employment as directors of a limited business falls under different rules and liabilities.

Any contractual agreement can be a handshake but we recommend having it written into a contract.

A one person limited businesses will also be self-employed which means the limited business obtains the contract and that limited business contracts the director of the limited business under self-employed status to carry out the work. YOU MUST TREAD CAREFULLY IF YOU OPERATE IN THIS WAY.

A GREAT TIP FOR YOU

If you sign a contract to do work, the contract may look authentic, lots of words and clauses but is the contract 'Legal'. Contracts are only ever challenged when something goes wrong and it can cost you a small fortune if you must appoint a solicitor to fight the other party and then you have court costs.

The best thing you can ever do before signing any contractual agreement is to:

• Write down what you need out of the contract
• Address areas you do not know or understand
• What if this or that happened, am I protected?
• What if this happened, who becomes liable?
• does your insurance policy cover that type of work?
• Do you need a licence to do that type of work?
• What if the other sub-contract out, who is liable?
• What is the other party goes bust, what is the outcome?

These are just a few areas your contract should cover. If your contract is based on a handshake, you will struggle to win a legal battle unless you have witnesses.