Quite simply, YOU do not decide. Even if you are convinced that you are self-employed, your actual status is determined by your working practices on any one particular contract. And, as noted above, your working status can even change during the course of a contract. Click here to view the HMRC IR56 tool.
Actually, this aspect of the legislation is not new – it has been in force, and not changed, since April 2000. What is new is that the 2007 Budget made it clear that contractors, agencies and clients that have misinterpreted, or abused, the legislation will now come under the HMRC spotlight.
So, to decide whether or not you are self-employed, HMRC provides a test of your status. Called IR56, this test is a series of questions about the specific working practices of your current/future contract. And it is important to remember that each new contract has to be re-assessed using IR56, and existing contracts have to be re-assessed if any of your working practices change.
By using Tarpon, however, you have no such worries as you have clear-cut employee status, fully approved by HMRC.
To speak to one of our tax experts call 0845 643 1580.