Employment = self-employed ???

Am I employed or self-employed? 

Whether you are employed, self-employed, both or neither will make a difference to the amount of tax and National Insurance contributions (NIC) you pay, as well as how you pay. You need to know which of these apply to you, so that you can comply with your tax obligations and claim tax reliefs available to you.

Employment status & the law

The law for tax, NICs and VAT does not define employment or self-employment. Generally, when we look at employment status, we apply the principles established by the courts. These principles are generally referred to as case law.

However, there are some special rules that do not follow case law principles and apply to certain occupations and jobs. Some apply to tax, some to NICsand some to both. These special rules can apply if:

• your work is arranged through an agency
• office holder
• you work for someone in your family

Your employment status is not a matter of choice ! ! !

Your employment status is based on the terms and conditions of the agreement you have with who you work for. They’re responsible for making sure it’s right.

I am still not clear whether I am employed or self-employed

You can check with your accountant, tax adviser for your employment status and the correct way of reporting income tax.

Talk to Us Now

Employment status is not always straightforward, and choosing the wrong classification can lead to unexpected tax bills or HMRC enquiries. This is a common concern — and one that even experienced workers find confusing.

At Elaga Accountancy, we have extensive experience in reviewing employment status and advising on the correct way to report your income. We take the time to understand your working arrangements, explain your position clearly, and help you stay compliant while claiming the tax reliefs you’re entitled to.

If you’re unsure whether you’re employed, self-employed, or somewhere in between, don’t stress over it. A short discussion can save you time, money, and unnecessary worry. Talk to us now, and let us help you get it right with confidence.

***Contact us to learn more.

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