Last week we looked at working as a freelancer, and when you might actually be an eployee or a worker rather than a freelance. This week’s advice from Annabel Kaye is for anyone who uses freelance workers.
Buying work or time from other people
If other people help you in your business, the same rules apply to them as apply to you – read last week’s article on freelance status to review the rules. Remember:
- Just calling someone a “volunteer” does not get you out of the rules applying. To be a “volunteer”, the person must have no pay (beyond expenses at cost), no set hours, and they mustn’t be under any obligation to do anything, not even to turn up.
- Calling someone an “intern” doesn’t change their legal entitlements to pay or anything else. Lots of unpaid “interns” should be paid at least National Minimum Wage, and you can’t agree with a person that minimum wage rules do not apply to your arrangement.
- Calling someone “freelance” or “self employed” doesn’t mean you don’t have to deduct tax – talk to your accountant about that.
- Calling someone “freelance” or “self employed” doesn’t mean they don’t have any rights.
- You can be liable for PAYE if you get the labels wrong – and this can build up to be a large figure quite quickly. It’s well worth getting this sorted out right at the beginning.