Compliance & Outsourcing – Artisan Recruitment Group

Management of Self-Employed Individuals & Associated Risks

Artisans’ expertise and experience will ensure your business meets all current legislative requirements when utilising self-employed individuals creating a compliant business with no risk from third parties.

We will provide an indemnity to give you peace of mind and ongoing advice to remain compliant.

Supporting your Future

Employment Status Determination

Determine Status: Use HMRC’s Check Employment Status for Tax (CEST) tool to determine whether the individual is genuinely self-employed or falls under the IR35 regulations.
IR35 Compliance: Ensure compliance with IR35 if the worker is deemed to be operating similarly to an employee. This might require deducting Income Tax and National Insurance Contributions (NICs).

Contractual Agreements

Clear Contracts: Draft comprehensive contracts that outline the scope of work, payment terms, project timelines, and responsibilities. Include clauses on termination, confidentiality, and intellectual property.
Consult Legal Advice: Consider consulting with a legal expert to ensure contracts are robust and comply with UK laws.

Construction Industry Scheme (CIS)

CIS Registration: Verify that both the contractor and the self-employed individual are registered under the CIS with HMRC.
Monthly Returns: Contractors must file monthly CIS returns to HMRC, detailing payments made to subcontractors and any deductions.

Health and Safety Compliance

Risk Assessments: Conduct thorough risk assessments and ensure that self-employed individuals are aware of and follow health and safety protocols.
Provide Training: Offer necessary health and safety training and ensure self-employed individuals have the required certifications.
PPE Provision: Ensure the provision of personal protective equipment (PPE) as necessary.

Insurance Requirements

Public Liability Insurance: Ensure that the self-employed individuals have adequate public liability insurance to cover any potential claims.
Professional Indemnity Insurance: For professional services, make sure they hold professional indemnity insurance.

Payment and Invoicing

Regular Payments: Establish a clear process for invoicing and payments. Agree on payment schedules and methods upfront.
Payment Terms: Adhere to agreed payment terms to maintain good working relationships.

Right to Work Checks

Legal Right to Work: Verify that the self-employed individual has the right to work in the UK by checking relevant documentation.

Record Keeping

Accurate Records: Maintain detailed records of all contracts, payments, invoices, and communications.
Financial Records: Keep comprehensive financial records for tax and compliance purposes.

Project Management

Clear Communication: Establish clear communication channels to keep self-employed individuals informed about project updates and changes.
Progress Monitoring: Regularly monitor the progress of the work to ensure it aligns with project timelines and standards.
Feedback and Evaluation: Provide constructive feedback and conduct performance evaluations to ensure high-quality work.

When you engage with Self Employed Individuals do you apply the following?

Do you verify the UTR number with HMRC?
Do you complete a questionnaire to determine if supervision, direction and control (SDC) is relevant?
Do you implement a contract for service between both parties?
Do you issue a sub-contractor order?
Can you demonstrate that the individual rectifies defects?
Do you deduct retentions?
Does the individual provide labour and materials?
Do you make payments against bona fide invoices?
Do you pay CITB (when providing construction services)
You do not provide vehicles, laptops or phones?

If you answer “No” to any of these questions, please get in touch as the individuals could be deemed employed and therefore, your business could face serious financial repercussions.