Why not operate as a sole trader?
You could operate as self employed only if you find clients directly and do not use an agency. In theory you may find clients and agents that are prepared to engage you on this basis (and you fulfil the criteria for self employment above), but in practice clients and agents will not do this because if your tax status is challenged they become liable for any additional tax and NIC due. Why would they risk it? Furthermore the Income Tax (Earnings and Pensions) Act 2003 Section 44 effectively prevents individuals from being self-employed where an agency is involved as it obliges the agency to treat the clients as if they are employees i.e. deduct PAYE. The HMRC website has useful information on IR35 and can also determine your IR35 status for you if you don’t want to use costly agencies. There is also a very detailed section on self-employment status. The Duport website provides a wide range of articles on setting up in business and has plenty of quality information and free downloads. As
