Establishing employment status—from a tax and NICs perspective


Produced in partnership with Anne Redston
Practice notes

Establishing employment status—from a tax and NICs perspective


Produced in partnership with Anne Redston

Practice notes
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This Practice Note has been written by Anne Redston, Barrister. It is her personal view; she is not authorised to speak for the Tribunals Service or the judiciary.

This Practice Note explains how to work out whether a person is employed or self-employed. It considers the National insurance contributions (NICs) deeming Rules, the contractual relationship between the parties, HMRC status determinations, together with how these can be challenged, and HMRC’s Check Employment status for Tax (CEST) tool. This Practice Note should be read with Practice Note: Employment status tests—from a tax and NICs perspective. The reasons why status is important is explained in Practice Note: Employment status—why it matters.

Remember that this Practice Note, and the other Practice Notes on employment status, are only a summary of the applicable law and do not cover all situations. HMRC may also take a different approach to workers in the entertainment industry, including film, theatre, TV and radio and musicians, and that approach is not covered in this Practice Note. In addition, further changes are likely in the near

Anne Redston
Anne Redston

Anne Redston is consultant editor of Tolley’s Yellow Tax Handbook and a judge of the Upper Tribunal (Tax and Chancery Chamber) and of the First-tier Tribunal sitting in the Tax and Social Entitlement Chambers. Her contributions to TolleyGuidance and LexisPSL Tax are her personal view as she is not authorised to write on behalf of the Tribunals Service or the judiciary.
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Anne was until 2021 a tenant at Temple Tax Chambers from where she practised as a barrister, advising on a wide range of tax issues including employment and personal tax, VAT, social security and customs duties. As well as being a barrister, she is a Chartered Accountant and Chartered Tax Adviser, and a Fellow of both Institutes.

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Employment status definition
What does Employment status mean?

Employment status is a contractual state outlining how the employee is related to the employer, which determines their rights and their employer's responsibilities in regard to them.

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