Rob Posted June 11, 2003 Share Posted June 11, 2003 Can anyone explain the difference between being Self Employed, A Sole Trader and a Freelancer to me? I've just got Business Link's free "No nonsense guide to Government rules and regulations for setting up your business". I've had a quick look, but I'm slightly confused by the difference between some of the above terms. Otherwise, this looks like a very good resource, not to mention the fact that it's free! Link to comment Share on other sites More sharing options...
gareth Posted June 12, 2003 Share Posted June 12, 2003 Can anyone explain the difference between being Self Employed, A Sole Trader and a Freelancer to me?To all intents and purposes they're the same thing. They're also all things that the Inland Revenue don't like you to be - that's the gist of all the current agro concerning the IR35 Order. No matter how much you believe you're a self-employed freelancer, subcontracting to various clients, unless you satisfy a bewildering array of criteria and conditions there's every possibility that the Inland Revenue will consider you to be an employee and will clobber your clients for arrears of income tax and N.I. accordingly. The PSA web site - www.psa.org.uk - has some very good information on this subject. Lightnix is also something of an oracle when it comes to IR35 ;). Link to comment Share on other sites More sharing options...
Guest lightnix Posted June 13, 2003 Share Posted June 13, 2003 Thanks, Gareth, what you say is broadly correct, although at the risk of sounding picky, I would point out that it's the IR56 regulations which govern self-employed sole traders. IR35 deals with individuals trading as Limted Companies. True, they are more or less the same set of regs, with IR56 the responsibility for correct taxation lies with the "employer", with IR35 it lies with the "worker". I can't find "that" article on the PSA website and I'm not getting involved in industry politics these days. In the meantime you could check the following links... IR56 Basics web page or click here for the same info as a pdf file.IR35 web page If you are thinking of becoming self-employed, then best thing to do is get the advice of an accountant. Apart from that, just be very wary of anyone who tries to tell you that you have to be a Ltd. Co. in order to be a freelance technician. Link to comment Share on other sites More sharing options...
Rob Posted June 13, 2003 Author Share Posted June 13, 2003 in order to be a freelance technician. Ooh! You said the 'T' word!! ;) Thanks for your help guys. Link to comment Share on other sites More sharing options...
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