Self-employed

'A person is self-employed if they run their business for themselves and take responsibility for its success or failure.' - Gov.uk.

Many people within the equestrian workforce, including grooms, choose to be self-employed for different reasons. It can give the flexibility to choose your own hours and wages. However, this means you will not have the same workers rights as those who are employed and on the payroll. Therefore, it is important to understand how to report income to HMRC and whether you need to set up a business.

The Grooms List has produced a helpful article on differences in types of employment and pros and cons of being self-employed.

setting up as self-employed

You need to set up a business if you ‘trade’ in goods or services. Visit gov.uk for more information.

This may feel daunting as it means careful record keeping and tax returns now fall to you to ensure your 'business' complies with the law.

The government website provides a step-by-step guide to setting up as a sole trader.

Employment rights

Self-employed workers are not paid through PAYE, and they do not have the rights and responsibilities of an employee.

If someone:

• becomes self-employed, they must check if they need to set up a business
• stops being self-employed, they should tell HMRC.

Employment law does not cover self-employed people in most cases because they are their own boss.

If a person is self-employed, they have:

• protection of their health and safety
• protection of their rights against discrimination (in some cases)
• the rights and responsibilities set out by the terms of the contract they have with their client.

Visit gov.uk for more information.