Employed or self-employed?

In order to establish your employment status, your employer may find it helpful to use the Employment Status Indicator (ESI), which is HMRC’s online interactive tool that asks a series of questions about the working relationship between the two parties. It is the quickest way of getting HMRC’s view on whether a worker is employed or self-employed.

The ESI tool can be accessed on their website here: http://www.hmrc.gov.uk/calcs/esi.htm.

HMRC will accept the tool's outcome as binding; as long as your employer has answered accurately to reflect the terms and conditions under which you provide your services. Your employer must also retain a printout of:

• the ESI result screen
• the Enquiry Details screen showing their replies to the questions asked

Alternatively, please feel free to get in touch with your local TaxAssist Accountant who will be able to discuss this with you further.

Date published 5 Dec 2012

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.