Employees/Contractors/Interns

From the outset or later, whether you operate as a sole trader, partnership or company, you might need paid help, in which case you might engage someone from time to time or part time each week, either as a contractor on a freelance basis or as an employee. 

Freelancers/Employees

You need to consider whether a “freelancer” is your employee in law, not self-employed”. The “label” of “freelancer” or “contractor” or “self-employed” person is not a deciding factor as to whether someone is self-employed or an employee. If someone you engage is your employee, you need to understand the legal, tax, NI and other obligations/liabilities/consequences of their being your employee. (For further information, see Guidance on IR35 and Self-Employment.) You also need to formalise the employment arrangement properly, even if your employee only works for you a few hours a week.

Interns/Unpaid Help

If you do not engage an employee/freelancer/contractor, but you have an intern or other unpaid help, it is a good idea to give them a suitable letter setting out what is expected of them. The advantage of this is that it will help avoid misunderstandings and lessen the risk that they might claim to be an employee and exercise the associated rights. (For further information, see Work Experience & Internships and Charity Volunteer Agreements.)