Whether you are employed, self-employed, both or neither will make a difference to the amount of tax and National Insurance contributions (NIC) you pay, as well as how you pay. You need to know which of these apply to you, so that you can comply with your tax obligations and claim tax reliefs available to you.
The law for tax, NICs and VAT does not define employment or self-employment. Generally, when we look at employment status, we apply the principles established by the courts. These principles are generally referred to as case law.
However, there are some special rules that do not follow case law principles and apply to certain occupations and jobs. Some apply to tax, some to NICsand some to both. These special rules can apply if:
Your employment status is not a matter of choice ! ! !
Your employment status is based on the terms and conditions of the agreement you have with who you work for. They’re responsible for making sure it’s right.
You can check with your accountant, tax adviser for your employment status and the correct way of reporting income tax.
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