How to Work Out if You Are Employed or Self-employed

Are You Self-employed or Employed?

Whether you are employed or self-employed has a significant impact on your obligations for tax , national insurance contributions, liability for negligence and employment law rights.

There isn’t really a definition of what makes a person employed or self-employed. Some unscrupulous companies try to take advantage of this by treating you as self-employed when you are in fact an employee, in order to avoid their Pay As You Earn (PAYE) obligations. The PAYE system is how you pay income tax and national insurance contributions. I