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Employee or consultant?

  • Fellow PM.Dip
  • Practice Licence
  • 86 posts
  • # 93469

I wonder if anyone could offer any advice on this. I have a client who runs a very small business and is about to take someone on to help with admin. The lady is insistent that she's self-employed, but when I put the details into the HMRC employment status indicator, it says quite clearly that she should be an employee (she can't send someone else in her place, for example).

She's now come back and said that since she's also a director of a limited company (which is an advertising business) she will provide her services as a consultant from that company. I've gone round and round this so many times now that I'm not sure if this is OK or not. Can the company just invoice my client for services provided and avoid the payroll situation altogether?

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