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Find out your employment status

30th June 2015

Are you a sub-contractor?

Are you Self-employed or an employee?

How do you establish whether you are 'employed' or 'self-employed' under HMRC terms?

This is a very important question and can make a significant difference to how much tax and National Insurance you will pay.

There are twelve questions that will help establish if you are likely to be viewed as an employee or self-employed for tax and National Insurance purposes.


1 Does your business own or rent business premises?

2 Do you need professional indemnity insurance? 

3 Does your business engage any workers? 

4 Has your business spent over £1,200 on advertising in the last 12 months? 

5 Has the current end client previously engaged you on PAYE employment terms?

6 Does your business have a business bank account which is separate from your personal account? 

7 Does your business have a business plan with a cash flow forecast?

8 Would your business have to bear the cost of having to put right Mistakes? 

9 Has your business been unable to recover payment for work carried out?

10 Do you invoice for work carried out before being paid?

11 Does your business have the right to send a substitute?

12 Have you hired anyone in the last 24 months to do the work you have taken on?