Niel from People Matters is often asked for an answer to a question which should be obvious, but isn't - are staff employed or self-employed?
There are tax benefits for both parties if a person acts as a self-employed contractor, such as savings on holiday pay, national insurance, PAYE and pensions.
However, HMRC are very specific that it is the employer's responsibility to determine the employment status of your staff. This applies regardless of whether staff are full time, part time, permanent, temporary or casual.
Employment status is not a matter of choice for you or your employees - it is a matter of fact based on key terms and the conditions of your working relationship with them.
If you need help in this area you can ask HMRC to help you make a decision through an online employment status indicator, which asks you a series of questions about the working relationship you have with your staff.
And of course, Niel from People Matters is always on hand to answer questions you may have on this subject or any other HR issues - simply visit his feature here.
