It is important that all workers know whether they are an employee or self-employed, as this can make a significant difference to the tax and National Insurance contributions they have to pay.
Are You Self-Employed Or Employed?
While this may sound straightforward, it can sometimes be difficult to determine someone’s employment status, for example in regard to contractors, a person may think they are self-employed and yet find that aspects of their relationship with the employer mean they count as an employee to HM Revenue & Customs.
HM Revenue & Customs provides information on how to decide this and the tax implications, and it is worth considering this as HM Revenue & Customs can be strict on those who make an error. There can, for example, be major cost implications for employers if someone they consider to be a self-employed person is instead deemed to be an employee by HM Revenue & Customs, so it is worthwhile ensuring robust arrangements with staff.
How Can Nelsons Help?
For more information about employment status, contact us on 0800 024 1976 or via our online form.