You may have read in the news HMRC’s proposal to introduce the new IR35 rules for medium and large companies in April 2021 which are an anti-tax avoidance scheme for disguised employment.
Now we have some more clarity on worker status as the Supreme Court has handed down its decision in Uber v Aslam.
The outcome is that Uber Drivers are workers.
Workers are a middle ground between employees and the self-employed. They have some rights such as the right to be paid for holidays and statutory sick pay (provided they meet the criteria), receive minimum wage but do not have all of the same rights as employees.
If you engage staff on a self-employed basis then you would be wise to have the situation assessed quickly to make sure that they are truly self-employed and not really workers or employees. If their true nature is that of an employee or worker then they may be able to claim back pay and other rights and depending on the size of your business you may have some difficulties with HMRC.
For further assistance on employment law contact a member of our Employment Team on 01384 811 811