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2. Mutuality of Obligation: There must be an obligation for the employer to provide work and for the individual to accept and complete the work, this can be as set out in any contract and may only be for a short period. 3. Control: The degree of control the employer has over the individual’s work. This includes how, when, and where the work is done. Higher control suggests employment. The fact that a right of control exists carries weight, even if it isn’t actually exercised. 4. Financial Risk: Self-employed individuals typically bear financial risk in the engagement, such as investment in materials and the possibility of making a loss. 5. Provision of Equipment: If the individual provides their own equipment, and this is significant, it suggests self-employment. 6. Opportunity to Profit: Self- employed individuals have the opportunity to profit from their work, beyond just being paid for their time. 7. Integration: If the individual is integrated into the organisation (e.g., appearing on the internal phone list, having management responsibilities etc), it suggests employment. 54 I 04:05
8. Contract Terms: The terms of the contract between the parties should be consistent with either employment or self-employment. Where the engager determines that the individual is employed, PAYE and NI need to be deducted via the payroll and paid to HMRC, including employer NI and the apprenticeship levy where applicable. Those the engager determines might be a worker under employment law
other online resources. “
HMRC provides extensive guidan including in its Employment Sta
GLOBAL PAYROLL MAGAZINE ISSUE 8
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