Employment status
Introduction
The way you work - and the way people work for you - have very important legal implications.
In simple terms, there are five categories of employment recognised by the law and the tax system. A person could be classed as a self-employed person, a worker, an employee, a director or a contractor.
There are also essential tax and National Insurance contribution (NICs) differences that come with different ways of working. As an employer, you must recognise the category to which the people who work for you belong, to ensure you fulfil your legal and tax obligations to them.
If someone is classified as self-employed for tax purposes they are usually classified as employed (worker or employee) for employment rights purposes.
This guide provides a general overview of the different employment status categories and what they mean.
Subjects covered in this guide
- Introduction
- Workers and employees
- Am I legally classed as self-employed?
- Employment status of company directors
- IR35 and other special rules
