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HMRC internal manual

Labour Provider Guidance

From
HM Revenue & Customs
Updated
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Interventions: compliance routes: Employer Compliance: employment status

Employment status work aims to ensure that income is charged correctly for tax and the correct class of National Insurance (NI) is paid.

Whether an individual is employed or self-employed will depend upon the nature of the relationship with the person for whom the services are provided. There will be cases where this is not easy to decide.

Local Compliance and specialist Status Inspectors are responsible for employment status work. They consider both the tax and NI aspects before giving their ‘opinion’ on the status of the individual, in writing to the engager and worker.

Further guidance on employer status work can be found in the Employment Status Manual 

Employment Status Indicator

The Employment Status Indicator should not be used by engagers who provide staff under third party contracts.

This is a tool that can be used to help determine whether a person is employed or self employed.

Access is via the HMRC website atEmployment Status Indicator