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It is possible to work for a company on a self employed basis. There are a number of factors which can be used to determine whether you are classed as an employee or self employed. It is essential for you to decide which status applies to you, as the outcome will affect your employment rights, tax and eligibility for state benefits.

You may class yourself as an employee if you have to do the work yourself and can’t contract out to someone else. You are also likely to be an employee if you work a set amount of hours, paid by the hour, week or month. If you receive a bonus payment or you are offered overtime, you are likely to be employed by a company.

Being self employed means that you are responsible for paying your own income tax and completing a yearly self assessment tax return. Failure to do this will result in large penalties being charged. To decide whether you are self employed, although working for a company, HMRC would ask you a set of questions. Answering yes to most of them will indicate that you are self employed but working for a company. If you are free to hire someone else to do the work on your behalf, you are self employed. If you have to risk your own money, and provide all tools and equipment you will be classed as self employed. Working regularly for different people, making corrections to work which is unsatisfactory in your own time is an indication of being self employed.

Check your employment status before taking on work, to ensure you are within relevant legislation.

About The Author

Kara Copple

An experienced business and finance writer, sometimes moonlighting as a fiction writer and blogger.

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