Legislative Compliance - Freelancers
As a freelancer there are three main sets of legislation that may impact both the way you deliver your services and risks that you run in the delivery of your services. Again, we will for clarity use UK legislation.
These are:-
Health and Safety and Work Act
HSE legislation is there to ensure the physical safety of all individuals in the workplace. Normally as a freelancer you will be working to an end user clients system and procedures. You will however, depending upon both your trading model and contract, be required to have both Employer and Public Liability Insurance.
Link to Fact Sheet
Taxation Legislation
Taxation Legislation for freelancers is a fast moving and complex arena. This requires you to be both up to date with current legislation and changes, its impacts and how you comply and mitigate any associated risk. We consider this to be beyond the capabilities of freelancers if you are in full time contracts for services and recommend this be outsourced to professionals. The following show the main legislation:-
MSC - Restricts the use of Limited Companies regarding the providers of company set-up, invoice, book keeping and allocation of tax breaks. In essence looks to assess all income as PAYE.
Link to Fact Sheet
IR35 - Restricts the use of Limited Companies and looks to assess the individual as employees rendering all income as PAYE.
Link to Fact Sheet
S660 - Restricts the allocation of tax breaks to Directors of Limited Companies
Link to Fact Sheet
CIS - Specific scheme for the self-employed in the construction industry. Registration is mandatory and penalties are stiff for non-compliance.
Link to Fact Sheet
PAYE - Sets both employer, employee and National Insurance bands on an annual basis.
Link to Fact Sheet
VAT - Two schemes exist, one for turnovers in excess of £150K and one below this.
Link to Fact Sheet
Employment Legislation
Normally applicable to end user clients if you are contracted as Contract Staff or an Umbrella Company. It defines your employment rights including sickness, holiday entitlement, notice period etc. Will apply if you take on other staff as either employee, self-employed or as freelancers which will require a definitive contract and insurance review.
Link to Fact Sheet