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How does employment status for tax and NI purposes differ from the legal definition of employment status?

(9 Posts)
seoladair Sun 02-Oct-11 19:42:19

Can anyone explain this to me please, or else point me to a website which clarifies this? Thank you.

Grevling Sun 02-Oct-11 22:45:46

http://www.direct.gov.uk/en/Employment/Understandingyourworkstatus/Workersemployeesandselfemployment/DG_10027916

Grevling Sun 02-Oct-11 22:46:03

www.direct.gov.uk/en/Employment/Understandingyourworkstatus/Workersemployeesandselfemployment/DG_10027916

Try again.

flowery Mon 03-Oct-11 09:31:10

The difference is that for tax purposes HMRC would make the assessment and decision, and for employment rights purposes it would be an employment tribunal. Neither are specifically required to automatically reach the same decision as the other however they would look at the same kind of criteria and it would be unlikely they'd reach a different conclusion.

In your case as HMRC has found that you are employed, an employment tribunal would be likely to agree.

seoladair Mon 03-Oct-11 13:03:08

Thank you both for your info.
Is the test for employment rights purposes more rigorous than for tax purposes?
Is a "worker" for employment rights purposes classed as an employee for tax purposes?

flowery Mon 03-Oct-11 13:24:34

HMRC and and ET would both look at the situation themselves. So if an ET held that someone was a 'worker' HMRC wouldn't automatically class them as one or the other, they'd look at the situation.

Lots of links and guidance here from HMRC

As I said, in your case, for the same reasons HMRC thinks you are an employee, I think an ET would also.

seoladair Mon 03-Oct-11 14:51:51

Thanks so much for this. I'm trying to be as informed as I possibly can, as I've found that I have to explain things to my union lawyer. I've spoken to a pregnancy discrimination specialist who was much more with it, but I'd have to pay a lot for her. So I'm trying to do as much as i can myself.

LittleMissWoodscommaElle Mon 03-Oct-11 14:58:38

This is purely anecdotal but I know a few people where although HMRC were happy that they were self employed for tax and NI purposes employment tribunals ruled that they were employed and were therfore unfairly dismissed.

One of these cases was a return from maternity leave issue.

seoladair Mon 03-Oct-11 16:52:42

Oh, that's helpful to know. As things stand, no-one except the Head of HR seems to think I'm a casual worker. Even her predecessor had assessed me as employed when I started working after graduation. I think the Head of HR got things wrong and just can't admit it. It's been very troubling, especially while I was pregnant.

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