Freelance work: tax and the law
I am thinking about whether to go freelance but Im a bit confused. Whats the difference between being employed and self-employed? Is being self-employed the same as being freelance?
Looking at the legal side if youre an employee, you make a contract with your employer. You have a number of legal rights such as in unfair dismissal and redundancy, maternity and parental leave benefits and notice payment. If youre self-employed, youre essentially your own boss whether youre setting up in business in your own right or youre offering your services to a number of potential contractors, like a journalist writing for several different newspapers. In the latter case youd probably call yourself a freelancer, but in practice, its the same thing as being self-employed. There is no legal definition of a freelancer its basically just a type of self-employment and tends to refer to the provision of services to various people or organisations.
If youre self-employed, you dont have all the legal protection given to the employed. However, a lot of recent legislation refers to workers rather than employees, and this could work in your favour. A worker basically means anyone who is not in business on their own account. So, although the legislation wont cover you if youre setting up in independent business, it could well apply if youre in freelance-type self-employment (depending on your contracting terms) and it does give you protection as regards working hours and under the working time and minimum wage legislation.
Good luck with your decision.
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