Background

When applying the usual employment status tests to individuals, the tax and NIC position will generally be the same. However, there are certain individuals who, because of social security benefit entitlement purposes or administrative convenience, are treated differently.

SSCBA 1992, ss 2(2), 7(2) allows that regulations may provide for:

1. •

   employment and the earnings from that employment to be disregarded for NIC liability purposes

2. •

   a person in any prescribed employment to be treated as falling within a category of earner other than that in which they would otherwise fall

3. •

   the secondary contributor to be specifically defined

In simple terms, this means that certain employments will be disregarded altogether; some individuals who would be self-employed for tax purposes under the usual rules (see the Working directly for an employer / engager guidance note) would be treated as employed earners and in the same way that some employed earners would be treated as self-employed. The detail is found in the Social Security (Categorisation of Earners) Regulations 1978, SI 1978/1689.

Employments