With Covid-19 resulting in a sudden reduction of work for many businesses some employers may be considering whether to staff their businesses differently in the future. There is a superficial attraction to using freelancers or contractors rather than employing people as there is no obligation to provide any work (and therefore no fixed salary payable) to freelances or contractors. However, businesses should be aware that seeking to re-label an employment relationship as one of self-employment will not be effective and can result in claims in the employment tribunal as well as back taxes, fines and penalties being due to HMRC.

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Following lockdown are you considering restructuring how you staff your business?

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With more cases of coronavirus (COVID-19), being reported in the UK each day, employers will be wondering how to handle the issue especially as they may need to react fast if a situation develops in the workplace or if there are concerns about the health of a particular employee.

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Changing an individual's working arrangements from employee to consultant may seem attractive; no employer National Insurance contributions to pay and greater flexibility for the individual. A win-win situation surely?

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