Employed or self-employed?

It is becoming increasingly tricky to determine whether you are legally self-employed in the eyes of HMRC. So to help you determine your true employment status we have created a comparison table so that you can see for yourself what factors need to be taken into account. Please note that these factors apply to anyone planning to offer their services on a self-employed basis.

Control (The right to control)
Self-employed	Employed
You can decide how to do your work as long as you complete the work to the engager's satisfaction You decide what tasks need to be done within the general job specifications given by the engager You are left to complete the work as you see fit when the output and deadline of the work to be completed has been agreed You cannot be moved between assignments without your agreement You don't have to inform anybody when you wish to take meal breaks, holiday or statutory leave You agree deadlines with the engager by which time the work needs to be completed rather than working a specified number of hours	You are required to work on regular days, hours, shifts or flexible working hours as agreed with the engager You may be entitled to be paid overtime You can be moved to other assignments or sites by the engager You are instructed by the engager how to carry out the work You may be entitled to receive training at the engager's cost for the work you do You have to apply for permission to take holidays You are entitled to statutory benefits such as sick pay, paternity.maternity pay
Mutuality of Obligation
Self-employed	Employed
You can refuse work offered to you You are responsible for finding your own work You can negotiate a price or each different assignment you undertake You cannot be moved between assignments without your agreement Once an agreed assignment has been completed the engager is not obliged to offer you further work	You cannot refuse work offered you by the engager You cannot refuse to work at a different location (assuming you will be reimbursed for expenses) You are entitled to and receive notice Once one assignment is completed, your engager is obliged to offer you further work and you are obliged to accept this offer
Substitution
Self-employed	Employed
You have the right to send a substitute to complete the assignment and this right is reflected in reality You have the right to use a helper to assist you in the completion of the assignment at your own cost	You provide personal services You cannot send a substitute to do your work in your place You cannot bring in a hleper to assist you in the completion of your work
Financial Risk and Reward
Self-employed	Employed
You negotiate your rates with the engager at the outset of the work and are not paid for time not worked You have to pay for/provide all your own tools and equipment You have to provide the necessary labour and/or materials at own expenses where defectie work needs to be rectified You are required to hold your own Public Indemnity insurance You can make a profit or a loss any any assignment You invoice the engager for all revenue You pay for your own work-related training You bear all the costs of administration for your business	All tools, equipment and/or materials are proided by the engager You may receive expenses and overtime You are paid a regular amount based on an hourly, daily, weekly or monthly rate Where your own defective work is to be rectified, you will not be required to provide the materials and/or labour at your own cost The cost of training (including inductions) for you to do the work is borne by the engager

So what now?

Once you've been through this table you should be clearer on what your employment status is. Remember that you should consider each assignment separately as the circumstances may change from one job to the other. You may find you are employed on the one assignment and self-employed on another.

This is an important decision so if you feel you need to discuss anything please call us.

More help?

For further information on self-employment, please visit the H M Revenue & Customs website.