Establishing employment status—from a tax and NICs perspective
Produced in partnership with Anne Redston of Temple Tax Chambers
Establishing employment status—from a tax and NICs perspective

The following Tax guidance note Produced in partnership with Anne Redston of Temple Tax Chambers provides comprehensive and up to date legal information covering:

  • Establishing employment status—from a tax and NICs perspective
  • The contract
  • What are the consequences of Autoclenz?
  • The employment status service (ESS)
  • Recategorisation by HMRC
  • HMRC determination
  • Challenging re-categorisation
  • NICs deeming rules
  • Tax and the agency rules

This Practice Note has been written by Anne Redston, Barrister. It is her personal view; she is not authorised to speak for the Tribunals Service or the judiciary.

This Practice Note explains how to work out whether a person is employed or self-employed. It considers the National Insurance contributions (NICs) deeming rules, the contractual relationship between the parties, the Employment Status Service (ESS) and HMRC status determinations, together with how these can be challenged. The reasons why status is important is explained in Practice Note: Employment status—why it matters.

Remember that this Practice Note, and the other Practice Notes on employment status, are only a summary of the applicable law and do not cover all situations.

For the position of those working through personal service companies and the application of the IR35 rules, see Practice Note: Personal service companies—the key benefits and key tax considerations.

In July 2017, the Taylor Review recommended several significant changes to the current legal position. In February 2018, as part of its response to the Taylor Review, the government published a consultation document on options for reforming and improving the employment status tests for both employment rights and tax purposes, and in December 2018 published the ‘Good Work Plan’. Some of the key points are summarised in Practice Notes: Employment status—why it matters—The Taylor Review and afterwards and Employment status

Related documents: