253. Meaning of 'a contract of service'.

A contract 'of' service is employment and is distinguished from a contract 'for' services, which is self-employment the income from which is taxed under a different statute1. The test for determining if a contract of service exists is broadly the same as that used in other areas of law, most notably employment law2. Whether a contract is one of service is a question of law, but the balancing process of applying the relevant criteria is left to the Tribunals as a question of fact3.

Briefly, the classic test in tax law for a contract 'of' service is whether:


    (1)     the