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HMRC internal manual

Employment Status Manual

Guide to determining status: engager’s business

It is important to try and get an insight into the nature of the engager’s business and the way that business operates. The kind of information you need in order to build up a picture of the business includes:

  • the organisational and management structure of the business
  • whether you are dealing with a retailer, wholesaler, manufacturer or a firm within the service industry sector
  • the number of employees there are in the business
  • whether any work is sub-contracted out
  • whether there are employees who undertake similar tasks to sub-contract workers?
  • whether the business is office-based or factory-based or whether work is carried out at a number of sites or at the premises of clients
  • whether there are any homeworkers.The amount of information you require will depend upon the number of engagements the worker has and whether these are with the same engager or a number of different engagers. You are only trying to set the scene so that you can see the part the worker plays in the engager’s business. Much of the information may already be held, for example within the Corporation Tax file, the Employers file, the End of Year Return, and there should have been some initial research undertaken before the review commenced.