Employed or Self-employed
Information from the Inland Revenue
A worker’s employment status, that is whether you are employed or self-employed, is not a matter of choice. Whether someone is employed or self-employed depends upon the terms and conditions of the relevant engagement.
Information gathered from the Inland Revenue suggests that as a general guide as to whether a worker is an employee or self-employed; if the answer is ‘Yes’ to the following questions, it will ‘usually’ mean that the worker is self-employed however the responsibility lies with the locum to establish their status for each and every assignment:
- Can they hire someone to do the work or engage helpers at their own expense? Self employed individuals must have the right to substitute themselves. Though this right may not be exercised.
- Do they risk their own money?
- Do they provide the main items of equipment they need to do their job, not just the small tools that many employees provide for themselves? As veterinary consultants this would be knowledge and maybe a stethoscope.
- Do they agree to do a job for a fixed price regardless of how long the job may take? I.E a fixed daily rate .
- Can they decide what work to do, how and when to do the work and where to provide the services? Consultants work within the practice hours and are in ultimate control of their treatment decisions.
- Do they regularly work for a number of different people? Often the case for locums.
- Do they have to correct unsatisfactory work in their own time and at their own expense? Ensure you have your own liability insurance.
There must also be a lack of mutuality of obligation stated in writing as part of your terms of cover. This is not a criteria highlighted by the inland revenue but is one of the basic principles of case law relating to self employment status.
Just because a worker is self-employed in one job, doesn’t necessarily mean he or she will be self-employed in another job. Equally, if a worker is employed in one job, he or she could be self-employed in another.
Whenever you undertake a locum position, if you wish to invoice the client as a self-employed locum, you must must supply the Practice with a contract for services. This a “self employment” document that sets out the terms under which you are working. Providing your Inland Revenue Self Employed Registration Number to the practice or working though a Limited Company (who is your ultimate employer) is also helpful.
Please feel free to contact us for further information to clarify what can be a confusing area. We can provide you with an overview based on information supplied by the Inland Revenue – however we absolutley recommend that you take professional advice from a tax/accountancy expert.
Some Useful contacts:
IR Self Assessment order line on 0845 900 0404.
IR Help line for the Newly Self-Employed on 0845 9154 515
