In the United Kingdom, the rules for determining whether someone is employed or self-employed are primarily based on the nature of the working relationship. Here are some key factors to consider:

1. Control: Control refers to the degree of autonomy and control that the worker has over their work. In an employment relationship, the employer typically has the right to control how, when, and where the work is performed. In contrast, self-employed individuals have more control over their work, including the freedom to choose their clients, set their working hours, and decide on the methods and tools they use.
2. Substitution: The right of substitution is an important factor in determining self-employment status. If a worker has the ability to send a substitute to perform the work on their behalf, it is more likely to be considered a self-employed arrangement. In an employment relationship, the employer typically expects the individual to personally perform the work.
3. Mutuality of obligation: This refers to the expectation that work will be offered and accepted. In an employment relationship, there is a mutual obligation between the employer and the employee. The employer provides work, and the employee is obligated to perform it. In a self-employment arrangement, there may be more flexibility and less ongoing commitment.
4. Financial risk: Self-employed individuals often bear a greater degree of financial risk compared to employees. They are typically responsible for covering their own business expenses, such as equipment, supplies, and insurance. Employees, on the other hand, are usually not financially responsible for these costs.
5. Integration: The level of integration with the employer’s business can also be a determining factor. If the worker is an integral part of the employer’s business and works exclusively for them, it suggests an employment relationship. Self-employed individuals, on the other hand, may have multiple clients or customers and are not tied exclusively to one entity.

It’s important to note that no single factor is decisive in determining employment status. Instead, the overall working relationship and the balance of these factors are taken into consideration. If you’re unsure about your status or have specific circumstances contact us at [email protected] for more information.