The question of an individual’s work status is far from straightforward. The matter is decided by considering the nature of the engagement between the individual and the party who engages them.
It is not sufficient for the contracting parties to describe the relationship in their own terms; rather, the authorities (HMRC and the courts) will look at the reality of the situation and ‘test’ the relationship considering all the relevant factors.
The onus is on the party who engages the individual to determine the work status. Issues to do with tax and national insurance contributions flow from this as do the rights of the individual, and the obligations of the party engaging them.
The law refers to the below types of worker: