Employed or self-employed?
In relation to tax and employment law, you need to consider whether a
worker is an employee of your business, or instead a self-employed
contractor (i.e. a freelance consultant or sole trader). An employee is a
worker who has entered into, or works under, a contract of employment. A
self-employed person is a worker who is an independent contractor who
usually works under a contract for services.
Despite arrangements made which are intended to create self-employment, the
legal position still might not amount in law to self-employment.
If the worker is using a personal service company (“PSC”), i.e. he is not
directly engaged by his client, then the IR35 rules might apply to the
proposed engagement of that PSC.
It is therefore always advisable to take relevant legal advice on your