Establishing employment status

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Establishing employment status by Mind Map: Establishing employment status

1. Types

1.1. Employment

1.1.1. Contract of service

1.2. Self-employment

1.2.1. Contract for services

2. Definition

2.1. Legislation unhelpful

2.2. Case law important

2.3. Factors considered and weighed in the balance

2.3.1. Control

2.3.2. Right to send a substitute

2.3.3. Mutuality of obligation

2.3.4. Equipment

2.3.5. Financial risk

2.3.6. Opportunity to profit

2.3.7. Integration into engager's business

2.3.8. Intention of parties

2.3.9. Basis of payment

2.3.10. Employment rights

2.3.11. Contract termination

2.3.12. Personal factors

2.3.13. Number and length of engagements

3. Usually the same status for tax and NIC

3.1. NIC regulations categorise some types of workers

4. Can have a different status for employment rights

5. Implications

5.1. Worker

5.1.1. Employee

5.1.1.1. Tax and NIC paid under PAYE

5.1.2. Self-employed

5.1.2.1. Pay tax and NIC via self-assessment

5.2. Engager

5.2.1. Operate PAYE for employees

5.2.2. Pay self-employed gross

5.2.3. Expensive if engager gets it wrong