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There are various tax, employment, and immigration considerations for companies to consider when engaging independent contractors in the United Kingdom. While the use of contractors can provide a cost-effective and flexible solution for early-stage or fast-growing firms, there are various risks including reclassification and potential increased tax and employment right liabilities.
Following Brexit, there are increased challenges when sourcing talent outside of the United Kingdom, and some firms are embracing the idea of agile working, the concept that people can work remotely at any time and place. This can also present its own tax, data protection, and employment law challenges.
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