CH 24 - Employed or Self-Employed

Question 1

complete sentence;
* employee is hired under a ….
* self-employed is a person under a….

Answer 1

complete sentence;
* employee is hired under a contract of service
* self-employed is a person under a contract of services

Question 2

With whom rests responsibility to determin the correct status?

Answer 2

Responsibility for determining the correct status rests with the business which engages the services of the worker.

Question 3

In cas of doubt over determining the correct status (employed/self-employed) an engager can ask …. or ….

Answer 3

In cases of doubt, an engager can either ask
* the local HMRC Status Inspector for an opinion or
* use the ‘Check employment status for tax’ service on the HMRC website.

Question 4

What are the 4 factors that represetns a contract of service (indicates employment) ?

What is the case law name they are based on?

Answer 4

Four factors must be present in a relationship for it to be a contract of service;
* Mutuality of obligation.
* Wage paid to the worker (and not a third party).
* Personal service.
* Control.

They derive from the Ready Mixed Concrete case.

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Question 5

What are 8 other factors taken into account in determining if someone is employed or self-employed?

Answer 5

• Degree of integration into the organisation.
• Provision of own equipment.
• Basis of payment.
• Financial risk.
• Opportunity to profit.
• Business organisation.
• The number and length of engagements.
• The name of the contract and position of the parties.

Question 6

What was a name of leading tax case of employement/self-employment, for;

actors;
- working specified hours, receiving fixed salary paid at regular intervals
- since 1993 in gernal should be treated as self-employed

Answer 6

Fall v Hitchen (1973)

employee if - regular work for fixed salary for particular employer

Question 7

What was a name of leading tax case of employement/self-employment, for;

market researcher;
- little or no control over what she did on dayt-today basis
- equipment for the job was proivded by the research company

Answer 7

Market Investigations Ltd v Minister of Social Security (1969)

‘judge made reference to the us of various criteria , such as provision of equipment, ability to hire a helper, and degree of control and financil risk etc’

Question 8

What was a name of leading tax case of employement/self-employment, for;

a vison mixer;
- multiple engagements, using equipment provided by studio company (due to specialist nature of the work)
- was VAT registered, issued invoices, had insurance policy, and issued replacement for himself while incapacitated

Answer 8

Hall v Lorimer (1993)

Lorimer was a vision mixer

mr lorimer was self-employed
judge rulled its important to look at all the relevant criteria

Question 9

What was a name of leading tax case of employement/self-employment, for;

teams of car valeters;
- on contract explicitly on a self-employed basis
- Supreme Court found that the valeters were employees

Answer 9

Autoclenz Ltd v Belcher (2011)
(reality ‘v’ a the written contract)

similar case: Uber BV & Others v Alsam & Others

‘any terms which are included to limit statutory protections by preventing a contract being interpreted as a contract of employment must be disregarded’

‘Autoclenz ltd v Belcher’ can be applied only if applying the normal contractual approach to the interpretation would result in the individual losing statutory protecctions given to employees, thus does not apply to cases involving PSC).