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varispeed | 4 days ago
That's such a classist term. Surely little working class person cannot have its own business, it's disguised employment! It's like micro agency with resource of 1. But somehow we don't say agencies run "disguised employment", because the profits are going to the rich shareholders instead of filthy unwashed pleb.
scott_w|4 days ago
Disguised employee is the term used when a person fits into the legal definition of an employee but are contracted, as opposed to being employed. HMRC sets out the conditions it uses to determine this for tax purposes, which you can find on their website.
> But somehow we don't say agencies run "disguised employment",
No, they're not "disguised employment" because the contract terms and working conditions differ to that of an employment contract. It's nothing to do with class.
Plumbers, electricians and joiners will typically run self-employed or private limited companies for their work. We don't call them disguised employees because they're not, they're independent contractors. Because "disguised employee" is nothing to do with class.
varispeed|4 days ago
The rule set was sharpened the moment skilled workers realised the agency / consultancy was charging £2k a day for their labour while paying them £60k a year, and decided to leave on Friday and invoice on Monday. Same desk. Same client. Same work. The only difference was that the margin stayed with the person producing the value instead of flowing to partners and shareholders.
That is when it became “disguised employment”.
When a multinational intermediary inserts itself and captures the spread, that is respectable commerce. When a one-person company does the same and keeps the surplus, it is suddenly suspicious and requires a special anti-avoidance regime.
You can hide behind control tests and contractual nuances, but the economic reality is identical. The variable that changes is who captures profit.
If a rule only becomes urgent when labour tries to behave like capital, that is not some sterile legal tidying exercise. That is class politics dressed up as “compliance”.