Code of Practice for Determining Employment or Self-employment Status of Individuals, 2021

The Code of Practice for Determining Employment or Self-employment Status of Individuals 2021(pdf) provides criteria which can be used to clarify whether a person is employed or self-employed. While all of the following factors may not apply to the job, an individual would normally be self-employed if he or she:

• Owns their own business
• Is exposed to financial risk by having to bear the cost of making good faulty or substandard work carried out under the contract
• Assumes responsibility for the investment and management of the enterprise
• Has the opportunity to profit from sound management in the scheduling and performance of engagements and tasks
• Has control over what is done, how it is done, when and where it is done and whether he or she does it personally
• Is free to hire other people, on his or her terms, to do the work which has been agreed to be undertaken
• Can provide the same services to more than one person or business at the same time
• Provides the materials for the job
• Provides equipment and machinery necessary for the job, other than the small tools of the trade or equipment which in an overall context would not be an indicator of a person in business on their own account
• Has a fixed place of business where materials, equipment etc. can be stored
• Costs and agrees a price for the job
• Provides his or her own insurance cover e.g. public liability cover, etc
• Controls the hours of work in fulfilling the job obligations
• Is not obliged to take on specific work offered to them
• Is registered for self-assessment tax returns or VAT