HM Revenue and Customs (HMRC) is currently looking closely at the role of freelancers, including independent doctors, warns Hempsons solicitor Robert McCartney
In the article, Watch how you hire advisers, he sets out some advice for employers of people who are self-employed.
Key warning signs for HMRC are those people who work solely for the same person, do regular hours every week and cannot substitute someone else if they are away.
Setting out some tests for employers, he says that practices must be confident that they have suitable employment arrangements in place are suitable that can withstand scrutiny by HMRC and/or employment tribunals?
This is not just an issue about tax, but also the employment rights of the person doing work for you.
The article sets out questions to ask to determine if an individual is independent:
- Is the individual responsible for how and when they work?
- Do they work through their own company or are they an individual?
- Does the individual provide a defined service?
- Can they send someone else to do the work?
- Can the individual work for other clients?
- Would HMRC consider the individual to be an employee for tax purposes?