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The employment status of clients and their workers is critical to avoiding the accumulation of unexpected VAT liabilities.
KEY POINTS
- The Uber case suggests that the lines between employed and self-employed remain blurred.
- Whether a hair stylist is self-employed should be clear.
- Failure to have a written contract could be detrimental.
- Stylists must be responsible for their work environment.
- The importance of daily practises to determining status.
The ruling of the Employment Tribunal in October 2016 in Aslam Farrar and Others v Uber 2202550/2015 relating to the online transportation network company and those working for it demonstrates that the lines between employed and self-employed are just as blurred as they always were. As well as its obligations to its workers Uber may be facing a huge VAT bill if the current ruling is not overturned and this is a cautionary tale for many different trades to get their...
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