Employment status tests

Produced by Tolley and written by Anne Redston
Employment Tax
Guidance

Employment status tests

Produced by Tolley and written by Anne Redston
Employment Tax
Guidance
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Anne is a barrister who sits as a judge of the Upper Tribunal (Tax and Chancery Chamber) and the First-tier Tax Tribunal. The commentary in this guidance note is her personal view as she is not authorised to write on behalf of the Tribunals Service or the judiciary.

Whether a person is employed or self-employed has significant consequences for tax and National Insurance contributions (NIC) purposes. There are also employment law and negligence liability implications. See the Employment status ― why it matters guidance note. Before reading this note, you are advised to consider the Establishing employment status guidance note, which also discusses how to challenge an HMRC employment status ruling in the First-tier Tax Tribunal.

Further changes are likely, as the government moves forward with the proposals in its ‘Plan to make work pay’ (published on The Labour Party site).However, in May 2025, the government said that developing and consulting on a new employment status framework was a ‘longer-term goal’ because:

‘It will take time to adequately develop and consult on such a far-reaching change

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Anne Redston
Anne Redston

Barrister


Anne Redston is a barrister and consultant editor of Tolley's Yellow Tax Handbook. She is also a judge of the Upper Tribunal (Tax and Chancery Chamber), the First-tier Tax Tribunal and the Social Entitlement Tribunal. She is a Chartered Accountant and Chartered Tax Adviser, and a Fellow of both Institutes.   

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  • 02 Jun 2025 08:10

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