Jurisdiction(s):
United Kingdom

Key definition

Employment status definition

What does Employment status mean? In practice, employment status describes how the law classifies a working relationship between an individual and the person or organisation for whom they perform work, to determine legal rights, protections and liabilities. Across the UK (England & Wales, Scotland and Northern Ireland) it is shaped by statute and case law and used in employment, tax and social security contexts. The principal UK categories are employee, worker and self‑employed/independent contractor; Northern Ireland broadly mirrors Great Britain. In Ireland, the core distinction is employee versus self‑employed, though some statutes use “worker”. Status is assessed on the reality of the relationship, not contractual...

UK tax and NICs employment status: Ready Mixed Concrete, mutuality, personal service, control, multifactorial analysis and HMRC/CEST guidance

Published by a LexisNexis Tax expert

Practice notes

Practice Note

This Practice Note is authored by Anne Redston, Barrister. It sets out her personal view; she is not authorised to speak for the Tribunals Service or the judiciary.

A person’s classification as employed or self-employed carries significant consequences for income tax and National insurance contributions (NICs). Employment Law and negligence liability are also affected; see Practice Note: Employment status—why it matters.

This Practice Note should be read with Establishing employment status—from a tax and NICs perspective, which also considers HMRC’s Check Employment Status for Tax (CEST) tool.

Despite the importance of the line between employment and self-employment, there is no clear definition of what makes an individual employed or self-employed. Instead, a substantial body of court decisions has developed. From that case law, various principles—often called status tests—have emerged.

This Practice Note outlines those status tests and examines some of the leading cases. This Practice Note, and the other Practice Notes on employment status, are only a summary of the applicable law and do not cover all situations...

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Anne Redston

Anne Redston is consultant editor of Tolley’s Yellow Tax Handbook and a judge of the Upper Tribunal (Tax and Chancery Chamber) and of the First-tier Tribunal sitting in the Tax and Social Entitlement Chambers. Her contributions to TolleyGuidance and LexisPSL Tax are her personal view as she is not authorised to write on behalf of the Tribunals Service or the judiciary. Anne was until 2021 a tenant at Temple Tax Chambers from where she practised as a barrister, advising on a wide range of tax issues including employment and personal tax, VAT, social security and customs duties. As well as being a barrister, she is a Chartered Accountant and Chartered Tax Adviser, and a Fellow of both Institutes....

Web page updated on 22/05/2026

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