Taking on a casual freelance 'employee'

[55allgold]

Bit of a contradiction in terms, I know!

I'd like to take someone on casually for a small number of hours per week. This is for a Ltd company, where I'm currently the only employee. Some of the work they could take away, do and bring back; some would have to be done here (and through trips to Post Office, etc).

I don't want the hassle and red-tape of PAYE/NI/etc. So I'd like the person to submit an invoice which I'd pay, and they'd sort out their own tax/NI via their own self-assessment tax return.

I've done this sort of thing myself as a freelance editor and consultant. Main difference is that this person would be a junior.

Any foreseeable issues with this? Anything I should think abotu now?

[55allgold]

Hi Eric - yes, I've read that at the various HMG Websites. I'm asking about the realities of using a self-employed 'junior'.

To clarify: it would not be their only job, they would invoice me, they would have control over their hours and holidays.

[55allgold]

Agree on all of the above. However...

Right now, there are many thousands of freelance workers working in a junior capacity in many areas of business. For instance, there are junior designers, junior writers and junior editors helping to pump out magazines for very big publishers (my old area of business).

But they commute day-in, day-out, sit at the company's own equipment, are told what to do by the publisher/editor and work full-time right alongside salaried staff doing comparable work.

So it can be - and is - done. on a large scale. Some of these people were affected by the IR35 clampdown and went out and got extra clients so that it was clear to HMG that they were not working for a single employer.

It's just the same arrangement in another area of business that I'm considering.

[55allgold]

Understood about the inconsistency of HMRC for some areas of business. I know that the labourer who did my extension was self-employed, despite always working for the same builder and always doing what he was told. He had no tools of his own and just turned up in his overalls every morning. An 'employee' in all of the aspects you mentioned above.

For this role, I do not yet have a person in mind yet. S/he is likely to be middle aged, very local and must already be self employed.

And the whole area is up for discussion at next week's meeting with my accountant.

[55allgold]

RemainAllHoof said:

Is IR35 relevant here?

Yes - tangentially. I mentioned it above. I know it was aimed at computer and IT-related contractors, but it also affected freelancers in the publishing industry. As Eric says, there are very odd ways that HMRC decides on these things.

Mine is the classic problem of a one-man-band getting to the point where there aren't enough hours in the day, but where employing someone formally is not feasible.

Having digested the thoughts above, I think my aim is to find someone who is already properly self-employed, and to whom the work is naturally and realistically sub-contractable.

[55allgold]

johnfm said:

get an agency worker in.

Hmmm... there's a thought. Thanks

Will look into the options and obligations on that tomorrow.