TO BE OR NOT TO BE – Employed or Self Employed

This has always been a grey area where HMRC has successfully challenged the status of numerous business and individuals in the past costing them extra hassle on top of additional tax bills as accountants in slough has learned.

So why it is important that we should make sure our status is what we perceive it to be without falling into the wrong side of taxman’s spectrum.

Accountants Windsor understands that in fact it’s all to do with the proper application of tax rules in relation to which business expenses would be allowed or rather disallowed along with right type of national insurance being paid.


Several factors can play crucial role in determining the employment status of an individual. Windsor accountants suggest considering the following points individually as well in conjunction with each other.

  • How much control a person has on his work conditions?
  • If any equipment needed in relation to the work, who provides them?
  • Who bears the eventual financial risk?
  • What are the payment terms and who dictates them?
  • Is it for the provision of personal services exclusively or not?
  • What obligations each party has towards other?
  • Are there any penalties involved, or any benefits/incentives provided?
  • Is the role integrated into an organisation’s business or is it rather independent and stand alone?
  • What intentions and perception each party has?
  • Can individual work for the competitors?

As per Slough accountants these are not the exhaustive list of the factors which may determine the status in question. Some points may indicate towards being employed whilst other towards self-employment. An overall assessment based on the combination may be imperative to reach any solid conclusion.

Accountants Windsor recommends a careful application of the above factors to every individual as each case is usually unique with its own merits and demerits as demonstrated in the case of Tomlinson vs Hmrc (2017) where he was found to be self employed even though he worked for the same company for 35 years with a view to be an employee.

Among other indicators HMRC upheld that there was no actual for services contract drawn out, even though there was no agreement on the payment of holiday/sick pay, pension contributions etc whilst Mr Tomlinson was paid on commission basis. The company provided tools and equipment needed, but he used his private vehicle and mobile phone in carrying out his duties. The other two important factors which sealed this case were that he could not sign any customer contracts on behalf of his company and also no restrictions were placed on him not to work for the competitors.

It was decided that even though both parties had this intended view and operated on Mr Tomlinson not being employed, the overall picture and facts pointed that he carried out the trade all this time and was not an employee of the said company.

In summary accountants slough learn that even though there were mixed and confusing circumstances surrounding the above case, the courts may sometime take a completely different view in their decisions ignoring the existing paperwork or arrangements where the facts of the case are pointing to a different direction.

How Can Accounttax Help You?

Helping business and professionals, accountants in slough as small business accountants and tax advisors have a strong idea of the needs and services you require. With our experience and the insight, which accountants in Windsor have gained over the years ensures professionalism with your best interests in mind.

Accountants Windsor can also stay on top of any legislation changes that may happen throughout the year. Ultimately, this will help accountants slough to understand your specific area weather it’s IT Contractors or CIS Contractors, Property landlords or Property developers, Doctors or solicitors, Small business or a limited company, which will then let accountants in Marlow to give you the best possible service that is tailored to you and your business’ needs.

We offer a range of accountancy services local to Windsor, Ascot and maidenhead can help you keep your business successful. Some of these services include:

  • Managing your accounts
  • Offering advice on tax planning and reducing your tax bill
  • Providing payroll and bookkeeping services
  • Helping you with VAT and Digital tax (MTD).
  • Completing and submitting your tax returns on your behalf

Accountants in maidenhead will support you and your business, by doing so you can rest and stop worrying about the business. You can trust our professionals to take care of your business for you. Now you can focus on being exceptional entrepreneur.

Contact Us Today

We pride ourselves on providing excellent services in Thames valley including slough, Marlow and Bracknell areas to businesses and professional clients who are keen to improve their business model. Working with us can ensure that you are well prepared for the future of your business with full control and confidence.

For more information on how we can support you and your practice, call us today on 01753 299 993.

Any reader interested in discussing this topic further can telephone Accounttax on 01753 299 993 in our Windsor office or on 01753 299 993 in our Slough office. You can also email

If you would like to receive Tax updates electronically, simply email stating Technical updates in the subject heading and we will add you to our distribution list.


The above information is provided for general guidance only without the taking any liability, written or implied, on the part of this firm, its officers and staff. It may not cover your specific business or personal situations, so you should avoid relying on it. It is important that you seek appropriate professional advice where you can provide the full facts of the case and all related documents. This firm or its officers cannot be held responsible for the consequences of any action or the consequences of determining not to act.


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