Your rights and duties
If you consider becoming self-employed - by offering your services in return of payment, as a freelancer, or as a consultant (or a "sole trader" according to HMRC) - you need to understand both the rights and responsibilities you have.
Your obligations include:
- registering with HMRC
- self-assessment for tax purposes every year
- book-keeping and accounting - keeping records of business sales and expenses
- business rates paid to us.
Look at the HMRC summary of obligations for further information.
Your entitlements include:
- taking holiday whenever you want
- applying for Employment Support Allowance when you're sick as there is no entitlement to statutory sick pay
- joining a local Chamber of Commerce that can provide advice and business opportunities or joining the National Federation of Small Businesses.
If you have difficulty in deciding if you are employed or self-employed, please check on the HMRC website. It is important to remember that a self-employed person in one job might also simultaneously be employed in another job. Some of the responsibilities and rights are different to the ones that employees have.