Status is not a matter of choice ... The facts surrounding a working relationship will determine whether the worker is an employee or self-employed. However, the working relationship between the worker and the engager IS a matter of choice.
When we are asked to draft a contract for a self-employed worker, we always discuss the facts of the actual working relationship. From this we can identify potential problem areas where the self-employed status could be attacked by HMRC. We can then suggest revisions to working practices to support the required status.
Clarity over the working relationship at the start of the engagement should prevent disputes with HMRC at a later date.
There are a number of key indicators to consider in determining employment status, including Control, Independence, Substitution, Risk and Equipment. We address all of these and more in drafting a suitable contract, but always with reference to the actual working practices in place.