It is important for an employer to be clear about whether an employee is an employee or actually self-employed. There are tax, national insurance and employment legislation issues around an employee’s status so it is essential that an employer does not seek to miscategorise an employee’s genuine status, either intentionally or unintentionally.

The key to whether an employee is self-employed or not lies in the relationship between employee and employer and what happens in practice in that relationship. This can be demonstrated by answering the questions laid out in the attached table.