Its importance is twofold, firstly it determines what employment rights are applicable and secondly it impacts on the tax regime applicable to the individual.
Our table below explains the employment rights applicable to employees, workers and the self-employed.
When looking at self-employment for tax purposes, similar, but slightly different, rules apply. There is no concept of a ‘worker’ for tax purposes; those who are ‘workers’ will usually (but not always) be accepted by the tax authorities as self-employed.
The following table sets out the tax implications of employment status.
Use the links below to keep up to date with the latest cases, reviews and commentary on this topic.
If you have any questions or issues you would like to discuss in relation to employment status please get in touch
The Supreme Court has rejected the much anticipated Pimlico Plumbers' appeal and found that Mr Smith, who was a plumber for Pimlico Plumbers Limited, was a worker for the purpose of the Employment Rights Act 1996 and the Working Time Regulations 1998.
In the case of Addison Lee Limited v Gascoigne the Employment Appeal Tribunal ("EAT") has dismissed the Respondent's appeal against an Employment Tribunal's finding that a cycle courier was a worker and not a self-employed contractor.