Home Business News Ramifications of ‘false self-employment’ case could be far-reaching 

Ramifications of ‘false self-employment’ case could be far-reaching 

by LLB Reporter
26th Jan 22 12:28 pm

Employment status expert and insurance firm, Qdos, have responded to the news that a sole trader has won her battle to be classed as an employee – a verdict that could spark similar cases among self-employed and gig economy workers, along with having significant tax implications for businesses facilitating ‘false self-employment’.

The employment tribunal focused on sole trader Gemma Long, who was engaged by technology company, Brain in Hand Ltd, as a ‘Brain in Hand Specialist’ who assisted users of the company’s apps. Brain in Hand Ltd provides services to people with autism, mental health difficulties and neurological conditions. Mrs Long suffers from ADHD and requested help with performing the administrative duties of her role. However, as the court notes explain, “once she asked for a support worker as a reasonable adjustment for her ADHD, she was not offered any more work.”

Qdos CEO, Seb Maley said, “Along with causing huge distress to the individual involved, the ramifications of facilitating false self-employment can be severe for businesses in the wrong.

“If a business engages someone as self-employed when in reality the relationship reflects employment, HMRC will expect the company to stump up missing employment taxes, which can mount up considerably just for one worker.

“So it goes without saying that for any business engaging or relying on sole traders, the cost of enabling false self-employment is potentially huge, both financially and reputationally.

“Against the backdrop of Uber, Addison Lee and numerous other gig economy employment tribunals, it’s becoming increasingly important that both parties are confident in their employment status compliance and agree upon it from the outset.”

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