Employing vs Invoicing As Freelancer

[peps1]

I was wondering if anyone could help me out with this.

I'm a sole trader and have a disabled friend who has excellent skills relating to an area of my business, but due to receiving Employment and Support Allowance he can only work for 16 hours a week (average) and not earn more than £125.50 a week.

Is it possible/legal to have him invoice me £500 each month for his work (making it deductible on my self-assessment), or do I need to set him up as an employee?

Thank you for taking the time to read.

 

[Newchodge]

Probably not. If he is providing services to you that would be classified as an employee, then no. Have a look at the hMRC website for definitions of an employee.

Being an employer does not have to be a big deal. You can outsource payroll and get support on employment law, if you ask for specific advice.

 

[D Patterson]

It sounds like he is an employee. I would suggest treating him as such or it can cause problems with HMRC.