How do you determine whether someone is employed or self-employed?
As explained in the information pages above, use of a particular “label”
e.g. “freelancer”, does not determine that a worker is self-employed rather
than employed. Their legal status is instead determined by the reality of
their relationship with their business client.
There will be many cases where it will not be easy to decide whether a
worker is an employee or self-employed. The essential question to decide is
whether, in carrying out work for a person / organisation, the worker is
carrying on a business. Ultimately it is for a court or tribunal to decide.
Guidance Note: Employment, Self-employment, and IR35
sets out a list of various indicators of (a) employment as opposed to
self-employment; and (b) self-employment as opposed to employment. Whether
you are the business engaging an individual worker or you are that
individual, if the individual is not paid under PAYE, we suggest you
consider all of those indicators.