Whether an individual worker is employed or self-employed will depend upon the nature of the relationship with the person for whom the services are provided. Where two individuals are engaged to carry out similar work, it is possible for one to be self-employed and the other to be an employee because they have been taken on under contracts with different terms and conditions.

Determining if Supervision, Direction or Control (SDC) applies

The worker can be subject to (or to the right of) SDC by anyone including:

  • the client or its subsidiary
  • an employment business, agency or other employment intermediary
  • independent consultants, site managers and project managers

Where there are procedures, methods and instructions which must be followed (written, verbal or implied), then it is likely there will be SDC over the manner in which the services are provided.

However, simply being required to comply with statutory requirements like health and safety procedures isn’t determinative, as all workers must comply with these.

HMRC’s view

HMRC will consider the worker’s arrangements overall when determining if SDC applies including the terms of the engagement and the way the work is actually done in practice. It will not be sufficient that the terms of a contract imply a lack of SDC if the reality is otherwise.

Omnia frequently consider and advise clients if SDC applies or if an individual can be self-employed, if you need help get in touch info@omniaoutsourcing.com