Hiring a Freelancer in the UK? Here’s Why You Can’t Treat Them Like an Employee

If you’re hiring a freelancer in the UK, there’s something really important you need to understand. Freelancers are not employees. It sounds obvious, but in practice, the line can get blurred. And when that happens, it’s not just a paperwork issue. It can quickly become an HMRC issue.

So before you set expectations around office days, fixed hours or ongoing management, let’s talk about what hiring a freelancer actually means and why getting it right protects everyone involved.

Freelancers and Employees Are Not the Same Thing

In the UK, employment status matters. HMRC looks at how someone is working in practice, not just what the contract says.

If you hire someone as a freelancer but require them to:

• Work set hours every day
• Be in the office on specific days
• Follow a strict hybrid pattern
• Provide maternity cover
• Be managed like a permanent member of staff

HMRC may decide that person is effectively an employee, regardless of the job title or agreement. And that can lead to tax complications, penalties, and a very uncomfortable conversation down the line.

What Makes a Freelancer Different?

Freelancers are independent contractors. That means they typically:

• Decide how and when they complete their work
• Work for multiple clients
• Use their own equipment
• Operate with autonomy
• Invoice for projects or agreed deliverables

They are outcome-led, not schedule-led. An employee, on the other hand, is role-led. They are managed daily, expected to work specific hours, and often required to be onsite or follow hybrid arrangements set by the company. This distinction is crucial in UK freelance hiring.

If You Need Onsite or Fixed Hours, You May Need an Employee

There’s absolutely nothing wrong with needing someone onsite, managed closely, or covering a longer-term internal role. But that isn’t freelance work.

If you require:

• Strict working hours
• Mandatory office attendance
• Ongoing daily management
• A defined employee-style role

You’re likely looking for a fixed-term employee or someone hired through an agency that can manage employment status properly. Trying to structure that as a freelance contract can create legal and tax risks.

Protecting Your Business and the Freelancer

Getting employment status right protects both sides. For businesses, it avoids potential HMRC challenges, backdated tax liabilities, and compliance headaches. For freelancers, it protects their independence and ensures they’re operating within the correct tax structure.

Freelancing is built around flexibility. Businesses gain access to specialist skills without long-term commitments, and freelancers retain control over how they work. When that balance shifts too far toward control, it stops being freelance.

What About Office Catch-Ups?

Let’s be clear: it’s absolutely fine to meet your freelancer in person. Having a coffee catch-up, popping into the office occasionally, or collaborating face-to-face is completely normal and often helpful.

The key difference is this:
It must be agreed mutually, not demanded as a condition of the role.

Occasional collaboration is not the same as mandatory office attendance.

Why This Matters More in 2026

As flexible working becomes more common and businesses increasingly hire freelancers for specialist projects, understanding UK freelance employment rules is more important than ever. Freelancers are a powerful part of modern business growth. But they must be engaged correctly.

If you treat a freelancer like an employee, HMRC may agree. And that’s a conversation no one wants to have. Freelancers are independent professionals. Employees are managed team members. Knowing the difference protects your business, protects your freelancer, and keeps everything running smoothly.

When you hire through PeoplePerHour, you’re accessing skilled, independent professionals. Respecting that independence is part of building strong, long-term working relationships. Get it right from the start, and everyone wins.