I have needed to research the questions surrounding employee status, worker, or contractor status. Here are my notes and links.
- Here’s ACAS on the subject and also on zero hour contracts and
- there is a House of Commons Research paper on IR35; there is a short link, http://bit.ly/2T2uLUG and here is a mirror copy, “Personal service companies: introduction of IR35“
The HoC paper has a very good summary, although it may not be the last word on acquiring other employment rights as the law was designed to reduce tax minimisation strategies by individuals. i.e. just because you are taxed as if in disguised employment doesn’t mean that you get all the employee protection rights of an employees although the courts seem to be very sympathetic to the view that you do.
There is no statutory test to determine employment status for tax purposes. The question whether someone is employed or self-employed is determined on the basis of criteria established by judicial decisions. In the past, HM Revenue & Customs’ guidance on employment status has indicated the points which influence the courts decision in these cases, by giving a series of questions:
Employed – if you answer yes to most of the questions you are likely to be employed:
• Do you have to do the work yourself?
• Can someone tell you where to work, when to work, how to work or what to do?
• Can someone move you from task to task?
• Do you have to work a set number of hours?
• Are you paid a regular wage or salary?
• Can you get overtime pay or bonus payments?
• Are you responsible for managing anyone else engaged by the person or company that you are working for?
Self-employed – if you answer yes to one or more of the questions you are likely to be self-employed.
• Can you hire someone to do the work, or take on helpers at your own expense?
• Can you decide where to provide the services of the job, when to work, how to work and what to do?
• Can you make a loss as well as a profit?
• Do you agree to do a job for a fixed price regardless of how long the job may take?
• If you can’t answer yes to any of the above questions, you are still likely to be self-employed if you can answer yes to most of the following questions.
• Do you risk your own money?
• Do you provide the main items of equipment (not the tools that many employees provide for themselves) needed to do the job?
• Do you regularly work for a number of different people and require business set up in order to do so?
• Do you have to correct unsatisfactory work in your own time and at your own expense?
I need to find another picture for these posts; it seems I am using the Lowry Factory Gate for all my employment law posts.