1. Define the work
Freelancers are usually engaged for an outcome or a defined period. Before you search, write down what needs doing, by when, where (on site, hybrid or remote), the skills and tickets it needs, and your budget or day rate range.
A clear scope makes it easier to compare people, helps the freelancer price the work, and is useful evidence of how the engagement is set up if status questions come up later.
2. Check employment status and IR35
Whether someone is genuinely self-employed depends on the real working arrangements: control, whether they must do the work personally, financial risk and how far they are part of your organisation. Calling someone a freelancer doesn't make them one. GOV.UK explains the tests, and HMRC's CEST tool can help.
If the freelancer works through their own limited company (an intermediary), the off-payroll working rules may apply:
- Public sector clients, and medium and large private sector clients, must decide the worker's status for each engagement and give a status determination statement (SDS) with reasons.
- Small private sector clients don't decide; the worker's own company does.
- If the rules apply, the fee-payer deducts tax and National Insurance before paying the worker's company.
Take reasonable care over the decision and keep a record of how you reached it.
3. Construction? Follow CIS
If you are a contractor under the Construction Industry Scheme (CIS), you must register as a contractor, verify each subcontractor with HMRC before you pay them, deduct the rate HMRC tells you from the labour part of their invoices, and file monthly returns. HMRC's verification tells you which rate to use.
The VAT domestic reverse charge may also apply to construction services between VAT-registered businesses. Our reverse charge guide explains when.
4. Check insurance and qualifications
Ask for evidence of the cover the work needs, usually public liability and, for advice or design, professional indemnity, with policy dates. Employers' liability insurance is a legal requirement for employers; if you take someone on as an employee, check GOV.UK for what you need.
For safety-critical and site roles, check the relevant cards and training (for example CSCS, SMSTS or trade tickets) and that they are in date.
5. Agree terms in writing
A short written agreement prevents most disputes. Cover at least:
- The services or deliverables, and the dates.
- The rate, how time is recorded, invoicing and payment terms.
- Expenses: what is recharged and how.
- Confidentiality, data protection and who owns the work produced.
- How either side can end the engagement.
- Substitution and control terms that reflect how the work will really be done.
Make sure the contract matches reality: HMRC and the courts look at what actually happens, not just what the paperwork says. Take legal advice if the engagement is significant.
6. Right to work
Employers must check that employees have the right to work in the UK before employment starts, using the methods the Home Office sets out. Doing the check correctly is what gives an employer a statutory excuse against a civil penalty.
Today the statutory checks apply to employment. The government has announced plans to extend right to work checks to some other working arrangements, such as some self-employed and gig economy work. The rules are changing, so check GOV.UK for the requirements that apply when you hire.
Even where the law doesn't require it, many businesses check a freelancer's identity and right to work as part of onboarding. Handle copies of documents carefully under data protection law.
7. Pay on time and keep records
Freelancers run their own businesses and cash flow matters. Pay to the agreed terms, keep records of invoices and payments, and keep your status decisions, CIS verifications and onboarding checks together.
How 3lanse helps
On 3lanse you find 3lansers by role, location, availability and day rate and contact them directly, with no finder's fees or margin on day rates. Every 3lanser can have their Right to Work checked free by the 3lanse team, and Verified 3lansers have also had their PQQ reviewed. These checks help you hire with confidence; they are not government approval and don't replace any check the law requires you to make.
On 3seeker Plus and Pro you can book 3lansers onto projects, ask for their Right to Work, PQQ and profile, send contracts that both sides sign online and approve their invoices. No money goes through 3lanse. On 3seeker Pro, Aidmin helps find candidates and prepares interview invitations for you to approve.
This guide is general information for UK freelancers, checked against the official sources below on the review date. It is not tax, legal or financial advice. Rules change, so check the sources or speak to a qualified adviser about your own situation.
Sources
- GOV.UK: Employment status
- GOV.UK: Check employment status for tax (CEST)
- GOV.UK: Off-payroll working for clients
- GOV.UK: What you must do as a Construction Industry Scheme (CIS) contractor
- GOV.UK: Employers' liability insurance
- GOV.UK: Check a job applicant's right to work
- GOV.UK: Right to work checks, an employer's guide