Are you employed or self employed?

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Your employment status, that is whether you are employed or self-employed, is not a matter of choice. Whether someone is employed or self-employed depends upon the terms and conditions of the relevant engagement.

If you work for someone else, it is important to know whether you are working for that person in an employed capacity or in a self-employed capacity as an independent contractor.

Dancers are usually self employed in the UK. They may have signed a ‘Code of Conduct’ but this is not a contract, but merely rules of engagement. See the section on Self Employment Rights.

A worker’s employment status will determine the charge to tax on income from that employment or self-employment. It will also determine the class of National Insurance Contributions, which are to be paid.

The same considerations to determine employment status will apply even if you work part-time or on a casual basis, or have more than one job.

You could find that you are an employee in one job and self employed in another.For example, you could be employed as a part-time shop assistant in the day and be self employed as a dancer in the evening.

Employed or self-employed?

If ‘Yes’ to all of the following questions, then you are probably an employee:

  • Do you have to do the work yourself?
  • Can someone tell you at any time what to do, where to carry out the work or when and how to do it?
  • Can you work a set amount of hours?
  • Can someone move you from task to task?
  • Are you paid by the hour, week, or month?
  • Can you get overtime pay or bonus payment?

If you are an employee, your employer should be paying your tax and National Insurance as PAYE and issuing you with a wage slip detailing deductions.

‘If ‘Yes’ to all of the following questions, it will usually mean that you are self-employed:

  • Can you hire someone to do the work or engage helpers at your own expense?
  • Do you risk your own time and money?
  • Do you provide the main items of equipment, outfits, etc?
  • Do you agree to do the job for a fixed price regardless of how long the job may take?
  • Can you decide how to do the work, when to work and where to provide the services?
  • Do you regularly work for a number of different people?
  • Do you have to correct unsatisfactory work and at your own expense?

Most workers within the adult entertainment sector fall into the category of self employed however, if after reading the above, you’re still unsure about your employment status you can use HM Revenue & Custom’s online Employment Status Indicator tool to help you decide by following the link below. It’s free, easy to use and will help you work out whether you are employed or self-employed in all but the most complex cases.

Go to the Employment Status Indicator tool