A new tool launched by HMRC aims to help employers and individuals alike establish whether someone is, for tax purposes, employed or self-employed:
It may be helpful but it won’t provide the answers to all status-related quandaries. For one thing, tax status isn’t the same as employment status. So, while the tool will give you an indication of whether a person qualifies for IR35 or whether they should pay tax through PAYE (although it’s always best to investigate this fully), it leaves unanswered the question of whether someone is an employee, a worker, or a self-employed contractor for the purpose of establishing their employment law rights. You will have to work that out separately, based on factors including:
- the extent to which the person is under your control
- whether they have to do the work personally
- whether you have to provide work, and whether they must do it.
The Acas guide to status is a useful starting point on this: