Employment status

Am I legally classed as self-employed?

Whether you can be classed as self-employed - as opposed to an employee or a worker - often depends on the level of your independence.

Although there is no individual test that is decisive, you're likely to be classed as self-employed if you:

You can be employed and self-employed at the same time. For example, you may work for an employer during the day but run your own part-time business in the evening.

You must tell HM Revenue & Customs you are self-employed within three months of the end of the calendar month in which you became self-employed. If you don't, you could face a penalty.

The law is complex and there are no hard-and-fast definitions of self-employment.

Special rules apply for contractors and subcontractors in the construction industry. If you sell your own services through a third party, such as a limited company or partnership, IR35 rules may apply. See the page in this guide on IR35 and other special rules.

You should take advice if you are unsure of your employment status or that of someone who works for you.

Subjects covered in this guide

• Introduction
• Workers and employees
• Am I legally classed as self-employed?
• Employment status of company directors
• IR35 and other special rules