New consultation seeks to tackle misclassification and improve protections for people genuinely working for themselves.
The UK government has launched a consultation to stop businesses from wrongly labelling people as self-employed when their working arrangements may allow them to earn the minimum wage and paid holidays.
Announced on Wednesday 14 October, the proposals could help parcel couriers, delivery drivers, hairdressers and gig workers. They are proposals being consulted on, not new rules already in force.
For Ghanaian and African readers already doing contract work—or considering it to earn extra income or start again after losing a job—the announcement deserves attention.
Being called self-employed does not, by itself, explain what rights you have or how much control you have over your work.
What is the government trying to change?
The government describes “bogus self-employment” as businesses mislabelling staff to avoid their responsibilities towards them.
It cites external estimates that as many as 900,000 people may be affected. That is an estimate, not a confirmed count.
Ministers also propose protections for genuinely self-employed people, including written information about individual contracts and stronger protection against blacklisting. The consultation closes on 8 January 2027 and concerns employment rights, not changes to tax rules.
Why does this matter to our community?
Working for yourself can be an attractive option. It may offer independence, flexibility and the chance to turn a skill into a business.
But there is a difference between running your own business and accepting work where a company controls much of what you do while calling you self-employed.
That difference can become important when you need time off, question your pay or find that the work has suddenly stopped.
The opportunity deserves a careful look—not just at the earnings, but at the arrangement behind them.
The contract is not the whole story
Official guidance says employment status depends on the reality of the working relationship, rather than simply the wording of a contract.
Useful questions include:
- Who decides when and how you work?
- Can you negotiate your price or fee?
- Must you do the work personally, or can you genuinely arrange a substitute?
- Do you have your own customers and take on business costs and financial risks?
These questions help you examine the arrangement. No single answer automatically determines your status.
Know what comes in—and what you actually keep
For someone genuinely working for themselves, money received is not the same as money available to spend.
Equipment, transport, insurance and other costs can reduce what is left. Tax, unpaid holidays and quieter periods also need planning.
Clear records help you understand whether the work is paying its way. GOV.UK says sole traders must keep records of business income and expenses for their Self Assessment tax return. This is existing guidance, separate from the new consultation.
What should you check now?
Read your contract alongside how the work operates in practice. Keep relevant agreements, messages and payment records.
If you are unsure about your employment status, start with Acas guidance and seek advice. In Northern Ireland, contact the Labour Relations Agency.
Ghanaian and African business owners should pay attention too. Calling someone a contractor does not, by itself, settle their employment status or the business’s responsibilities.
Working for yourself can open a door. Understanding your rights, responsibilities and real earnings helps you decide whether it is the right door for you.
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