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  • every freelance contract to ask themselves at some point.

  • Am I caught by I 35?

  • How do I know on dhe it comes down to Are you working like an employee or a self employment or a self employed person?

  • And that comes down to look in a case law?

  • Because employment status is all about case law is not statute.

  • Andi.

  • I just wantto talk quickly about the four big factors I look for in deciding whether someone's court or not.

  • Number one is the issue of control.

  • If you decide how you work, that is an indicator off off not being caught by 35 it's a good thing.

  • Nearly all major I 35 cases come down to the issue of control.

  • Who decides how that person works?

  • Not where, when, what they do, how they work.

  • And if if you are directed or supervised or controlled by the client, a foreman or a manager telling you how to do stuff, that's bad news.

  • If you're left to your own devices a bit, you given a briefing, you fulfil it, or maybe your office.

  • I ain't even you can show up.

  • You're in control.

  • That's a good thing, and you want the contractor your contract to show that to support you in that number two I would say the right to substitute.

  • If you genuinely have a right to send somebody in to do your job, then you're home and dry you on an employee because employees can't send them mate in to do the job.

  • Um, that generally doesn't happen there, but what often happens is there is a contract clause that says you have the right to substitute.

  • Now that's helpful.

  • Hmrc would often say that's not real, but is helpful.

  • But we wanna watch out for it.

  • It's a genuine right to substitute.

  • If it's if the end client could just say I is how their consent, if you can send it in, that's not really a genuine right.

  • It's just a right to suggest a substitute.

  • Number.

  • Three Financial risk businesses suffer financial risk Employees Don't employees get paid if they turn up even if they cock up, businesses have to have risk if they don't get if they if they cock up, they make mistakes, they might not get paid.

  • If they give a quote saying, I'll do this job for 10 grand.

  • It might take him a week.

  • It might take him a month.

  • Um, you know, and it's that their risk.

  • There's financial risk there.

  • So if there is financial risk, that's a good thing.

  • But generally is a heart.

  • Most free lunch don't really suffer that much financial risk apart from needing insurance in case in cases of an accident or or professional negligence.

  • Fourth mutuality of obligation.

  • If you I have to turn up for work and your employer has to pay you, then there's mutuality of obligation.

  • That's indicated employment.

  • If you contend, work down.

  • Or, um, the employee doesn't have to pay you if you don't turn up.

  • Then there isn't mutuality obligation.

  • No more like a business on DDE again have seen contracts or have seen it cases where freelance have been sent home because no work in they don't get paid.

  • And in those circumstances, there is no mutual lt of obligation, which means they are home and dry rappel they got good argument is in the past I 35 So talk it through with your accountant.

every freelance contract to ask themselves at some point.

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