Employed or self-employed status
Whether an individual is an employee or self-employed is key to the way payments made to the worker are treated by the payer.
Individuals who are employed must be brought within PAYE via the payroll. Payments to a self-employed person can be made without deduction of tax or national insurance contributions.
There may be factors in a case which point to a worker’s employment, and others pointing to self-employment. No account can be made of the relevant weighting of the different factors and each case must be considered one way or the other on its own set of circumstances.
For various reasons it is good practice to have a contract in place with the worker, and we can help clients draft the intended terms and conditions. In doing so however it is important that these reflect the actuality and true intentions of the contractual parties.