A6.966 Status

HMRC will consider the facts surrounding the status of a worker and will question the employer and possibly the worker. It will often use the Employment Status Indicator to provide an opinion1.

HMRC will look at the status of any worker who is not processed through the payroll, including casual workers, subcontractors and consultants.

If an error is made in categorising the status of a worker, the employer will be responsible for any tax and National Insurance due. HMRC will not automatically set off any tax paid by the worker, but will only do so if they make a direction2.

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial