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Inland Revenue,  IR,  tax

What am I? An employee or a self-employed contractor?

certEmployees or self-employed contractors. It is important to note that a person can be self-employed in one line of work and still work for someone else as an employee.

Are you an employee or a self-employed contractor?

Generally an Employee is someone who: –

  •    Works set hours,
  •    Is paid at set rate,
  •    can be told at any time what to do on the job, or when and how to do it, and
  •    Is under an Employment Contract and is prevented from doing work for someone else.

A Self-employed Contractor is someone who: –

  •    Decides or controls how they work,
  •    Invests or risks their own money in the activity,
  •    Provides the major assets or working equipment needed for the job,
  •    Provide or pay for their own training, and
  •    Are responsible for getting the work done.

Having decided that you are a Self-employed Contractor you must then decide whether you are a Self-employed Contractor, performing taxing activities called schedular payments.

Note: If your Taxing Activity does not appear on the list of scheduler payments then you are not a self-employed contractor, performing taxing activities.

Having decided whether you are: –

  •    An employee, or
  •    A self-employed contractor, performing taxing activities, or
  •    A self-employed contractor, NOT performing taxing activities,

The next step is to:-

  •    A self-employed contractor, NOT performing taxing activities
    •    Does not need to deduct tax and therefore does not need to register as an employer as.

Read the Inland Revenue’s full article on who is an employee or a contractor.

If you have any questions regarding this article or want any further information please contact us.

Disclaimer: This publication has been carefully prepared, but it has been written in general terms only. The publication should not be relied upon to provide specific information without also obtaining appropriate professional advice after detailed examination of your particular situation.

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