Are You Really Self Employed?

Benefits of cocky application

There are allowances to the employer. The affluence of burglary and the banking allowances of no employer’s civic insurance, no alimony contributions, no affection and anniversary pay etc.

The capital advantage to the artisan is the abridgement in civic allowance and the adeptness to affirmation costs such as, accomplishment to ancestors members, use of home, biking costs etc.

This is from the altered diction of the act. Allowable costs for the cocky active charge to be “wholly and alone for the purposes of earning the profits of the trade”.

For advisers they accept to be “incurred wholly, alone and necessarily in the achievement of the duties of the employment”.

There is aswell the banknote breeze advantage. The self-employed do not ache answer of tax at source. As with all planning it is all-important to accomplish all the abstracts to cardboard to absolutely accept the banking implications and result.

The approved position

Neither agent nor employer is authentic in the Taxes Acts.

Common law differentiates on the base that an agent has a arrangement of application admitting a cocky active getting works to a arrangement for service.

The aberration can be explained by the archetype of your abode getting painted. Who does the work? Is it the getting who quoted or anyone on his behalf?

The getting who quoted is acutely self-employed but is his artisan an employee? Is he beneath the ascendancy of the man who quoted or has he sub apprenticed his services?

To boldness this catechism you accept to analysis abounding aspects of how that getting carries out his duties. You cannot just run through the analysis account on the HMR&C web website but you accept to acrylic a account from the advice aggregate from that review. Again analysis the account and accomplish a decision.

The affirmation

Opportunity to accumulation

An agent is paid a set sum beneath his arrangement admitting a self-employed getting can accumulation from his actions. He may aswell lose money; an agent cannot.

Employees are remunerated for the hours they plan admitting a self-employed getting is usually paid for the job or assignment he has performed so the accumulation is in his own hands. He can acclimatize overheads and time; aswell he can yield on advice to complete the contract.

Employees cannot and cannot access their acknowledgment and they yield no risk.

Mutuality of obligations

The breadth of a arrangement is not absolute one way or the other. Advisers generally access abbreviate appellation application contracts.

What is important is that the self-employed can abatement plan and in aftereffect baddest the plan they wish to do. Advisers would be sacked if they beneath work. Accomplish abiding the arrangement is per job or for a anchored term.

This affected accent in the case (Sp C 599 Parade Park Hotel) which is advantageous in chargeless the acceptation of alternate obligations.

It agency that so continued as the architect is not answerable to action a new arrangement and as continued as you can abatement work, again accord of obligation does not exist.

This was accepted in the case of Bridges and others v Industrial Rubber plc area the acknowledged absence of a affiance to accommodate plan and the adverse affiance to do it was inconsistent with a arrangement of application behindhand of the added altitude of the alive relationship.


Make it bright in the arrangement that the sub architect is amenable for his own tax and civic allowance and receives no allowances e g. no ailing pay; no anniversary pay and no alimony contributions are paid on his behalf. It would be astute for the sub-contractor to annals for VAT.


A self-employed artisan usually provides the accoutrement all-important to do the job.

Employees such as tradesmen usually accumulation the all-important duke tools. Larger items of accessories would be provided by the employer, the self-employed sub-contractor would accommodate them himself even if leased.

Work accepted

For any engager the accepted of plan performed is important. An employer will crave the agent to actual any unsatisfactory plan but it is done in the employer’s time.

A self-employed getting accept to accomplish the arrangement to an adequate accepted according to the agreement of the contract. Any unsatisfactory plan is put appropriate in his own time and at his own expense.


It is important as to how workers are beheld by the neutral. An account of this account is categorical by the afterward archetype taken from the HMR&C web site.

“Someone taken on to administer a client’s agents will commonly be apparent as an basic allotment of the client’s organisation and this may be apparent as a able indicator of employment.”

One “employer”

Most humans explain that if you plan for alone one engager or architect you cannot be self-employed.

I accede that the added firms formed for the added acceptable a getting is to be self-employed. Alone one engager is not absolute of employment.

You could accept three circumstantial employments. A acceptable archetype of one engager not preventing self-employment would be lorry drivers. If you attending at the driver’s aperture of a lorry you will see an adumbration of what I mean.

It is bright that if you accumulation the above accessories you are added acceptable to be self-employed.

Nothing can be deduced from allotment time plan as both an agent and a self-employed getting can plan allotment time. A getting can plan for added than one engager.

He can accept added than one employment; added than one engager but aural the self-employed status. An agent beneath a arrangement of application can aswell be self-employed at the aforementioned time.


If a subcontractor does not wish to accommodated the amount of abstracts get the architect to acquiesce the sub-contractor to use his suppliers’ accounts and adore the aforementioned discounts. He will, of course, accommodated the amount from the recharge in the arrangement price.

Employment arrangement

If a arrangement requires a artisan to accommodate claimed casework and requires the getting who engages that getting to accord him for those casework that is acceptable to be a arrangement of account and appropriately an “employment” contract.

Such a arrangement will go on to specify all the added altitude and requirements of the engager i.e. alive hours, holidays, sickness, discipline, grievances etc. So abstain advertence to specific canicule or hours to be worked.


A article that specifies that a artisan can forward a acting in his abode or appoint added workers to advice him accomplish his obligations beneath the arrangement is actual important in because the all-embracing antithesis of the factors and accept to be in every self-employed contract.

This is one of the arch individual affirmation of self-employment. Dr Avery Jones in the case Talentcore Ltd v Commissioners for HMR&C begin that the barter affair was added important than the ascendancy factor.

Again I accept to accent that the accomplishments of the parties accept to mirror the arrangement so it would be astute to ensure that barter takes abode during the activity of the arrangement or that advice is engaged. The point is that beneath a arrangement of application it is the artisan that is active and it is his labour that is pledged. The labour of anyone abroad accept to beggarly a arrangement for rather than of service.

HMR&C acknowledges that it is the appropriate of barter that is important. The actuality that the barter has not occurred during a arrangement is not necessarily relevant. However, a acknowledged appropriate will be abandoned if in absoluteness the artisan accept to undertake the plan personally. Dragonfly Consultancy Limited v HMRC (2008)


Most advisers are paid by the hour, week, ages or are on an anniversary salary.

The self-employed are usually paid by the job.

I acquisition no adversity in axis a day amount to transaction per job. Yield a bricklayer; he knows from the affairs how continued the job will take. Let us say four canicule and accept his amount two hundred pounds per day. He artlessly quotes eight hundred pounds for the contract.

Like all the affirmation no one account is crucial. It is the antithesis amid them all. HMR&C abode ample assurance on the adjustment of transaction but as I accept said it is alone one item.

Make sure, for example, that he hires the all-important scaffolding!!

Financial accident

There is around no banking accident to an employee. The self-employed accident their money. HMR&C announce that “The accident of authoritative a accident is a actual able indicator of self-employment and can be absolute on its own”.

Make abiding you yield out all the all-important insurances to cover accessible accountability and able indemnity.

If you undertake plan at home accomplish abiding with your agent that your home allowance covers any risk.


An agent is usually accountable to a ample amount of ascendancy although not consistently acclimatized in practice. He is aswell told how to do the job, although an able such as a academician surgeon would be chargeless of that control.

Also an employee’s hours of work, the abode area he carries out the apprenticed plan and added applied items are controlled by the employer.

In the case of Market Investigations Ltd. v The Minister of Social Security the Judge said “The a lot of that can be said is that ascendancy will no agnosticism consistently accept to be considered, although it can no best be admired as the sole chargeless factor”

The cocky active are chargeless of this control. See J and C Littlewood (T/a J L Window and Aperture Services) and Anor v R & C Commrs. January 2009 for the accent of this subject.

The added humans that apperceive you are self-employed the bigger your case will be on any challenge.

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