Back to Worksuite Glossary

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

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

Let's get started

Find out how easy it is to grow and organize your external workforce with Worksuite.

Contact Sales