An employee will receice regular wages ,while a self-employed person will usually receive a lump sum.
A employees Ntional Insurance and income tax is deducted by their empoyer from their wages.However a self-employed person must pay his or her own tax and insurance.
Tools are provided for employees whereas self-employed people will usually provide their own.
If the work being done is a integral part of the business ,than the person is probablt an employee.A self-employed person is more likely to be doing that is an accessory and it is not ingrated into the business.
Tests of employment
The courts must consider several points when deciding whether someone is a employee or self-employed.Through this they have developed several different tests.The main ones are:
*Organisation or intregration test
*Economic reality test (or multiple test)
This looks at who has the overall control of the work done.Can the employer tell the person what to do,how to do it or when to do it ? The greater the degree of control the more likely it is that the other is a employee.However, if the individual worker decides what to do,how to do it and when to do it,than this is probably a self-employed situation.
Organisation or integration test
Is the person part and parcel of the business?This test is important where the emplyee is highly-skillled and makes decisions about what to do and how to do the work.Under the control test it is possible that such a person could be regarded as self-employed.However, under the organisational test, the person will be considered employed if what they do is part and parcel of the organisation.
Economic reality (or multiple…