Self-Employed / Freelance / CIS / Contractor / Tradespeople – Be Aware!

If you’re a tutor, Uber/UberEats/Deliveroo driver, CIS subcontractor, builder, decorator, freelancer, contracted YouTuber, IT professional, or factory workers via an umbrella company — the proposed Single Worker Status reform might change how your work is classified. That means changes to your tax, national insurance, and possibly new legal rights like sick pay or holiday entitlement.
Some digital creators — like YouTubers regularly producing content under contract for media companies — may fall into this category too, even if they’ve always been treated as freelance.
Whether you’re a tradesperson working long term for one builder, a delivery rider on shift apps, or you invoice through a personal service company (PSC), this reform could impact how you’re legally seen and what rights and obligations you have.

What Is “Single Worker Status”?

Currently, UK employment law splits people into three categories:
• Employee – full rights (holiday, sick pay, redundancy)
• Worker – partial rights (minimum wage, rest breaks)
• Self-Employed – no rights, full tax responsibility

This structure creates confusion — and many end up in legal grey areas. Big cases like Uber v Aslam, Pimlico Plumbers, and Addison Lee have shown how misclassification leads to court battles and penalties.

Under this new reform, the government aims to merge “employee” and “worker” into one legal status; give basic rights (sick pay, unfair dismissal, etc.) to everyone providing labour, unless they are truly self-employed; and reduce disputes and abuse in gig economy, construction, and agency roles.

Who Will Be Affected?

You may fall into this category if you are:
• A gig worker using apps like Uber, Bolt, Deliveroo
• A freelancer or contractor with only one main client
• A CIS subcontractor in construction, plastering, electrics, etc.
• A contracted worker assigned long-term to one company, but paid by an umbrella/agency
• A PSC contractor possibly near or inside IR35

Those truly independent — with multiple clients and full control of their schedule and fees — are less likely to be affected.
But if you rely on one client, follow their schedule, and don’t really control how you work, this reform could change your legal status, even if you've been self-employed for years.

Are Uber, Deliveroo, Delivery Workers Concerned?

Yes, Uber, Uber Eats, Deliveroo, and other delivery platform workers are directly affected by the Single Worker Status reform. The landmark Uber v Aslam case confirmed that many gig workers should be classified as “workers” with rights such as minimum wage and holiday pay. Deliveroo and similar platforms are also under scrutiny, as the reform aims to provide legal protections and clearer employment status to those working regularly or relying financially on one platform.

What Rights Could You Gain? And What Else?

If you're reclassified under Single Worker Status, you might become entitled to: paid holidays, statutory sick pay, minimum wage guarantee, redundancy pay, protection from unfair dismissal. Your contractor, umbrella company, or whoever your de facto employer is will be responsible.

Changes are expected — don’t assume you’ll be unaffected. While there are some gains, there are also changes. You need to adapt, contractors will adapt, and the government will adapt. The gain for the government is that people pay the right tax and avoid disguised employment — ensuring proper national insurance contributions, both employer and employee parts, and paying the correct tax. No hidden or lower costs as disguised employees.
One may also need to go onto payroll (PAYE), even if you’re currently paid gross or via invoice.

What About Tax and IR35?

Although this reform focuses on employment rights, it connects closely to tax status and IR35.

It’s important to note: This reform does NOT yet change tax rules, but if you're already near the IR35 boundary, it might push you closer.
You could end up taxed like an employee (inside IR35), but still not getting employee benefits unless this reform goes ahead.

This contradiction has hit many contractors hard — some face penalties, even though they had no idea they were “inside IR35.”
Until HMRC confirms tax changes, you must still follow current IR35 rules — and we can help you assess your risk.

How Could This Affect Your Earnings?

This isn’t just about definitions — it could change: your pay structure, if you must move to PAYE; your tax bill, if you lose allowable business expenses; your risk, if HMRC later says you were misclassified.

What Should You Do Now?

Although this is still in consultation phase, you should start preparing.
Review how you work: Do you really control your time and terms?
Check whether you’re financially reliant on one client.
Rethink whether a limited company or sole trader is better.
Prepare for contract updates, payslips, payroll changes.
Stay compliant with IR35 — don’t wait until HMRC contacts you.

Get Expert Help – Before the Rules Catch Up With You

Many people only discover there’s an issue after a letter from HMRC — by then, it could mean thousands in penalties or loss of rights.
We at Elaga Accountancy help gig workers, tradespeople, freelancers, and self-employed professionals across the UK manage their taxes and protect their earnings. Don’t wait to be reclassified — act early and stay in control.
Our accountants at Elaga will always keep you updated as the new “Single Worker” law develops — and make sure you’re always in the safest position.

Follow Us for Updates

And if you're unsure how this applies to you, get in touch with Elaga Accountancy now for a tailored review.

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