PLEASE NOTE: The charity TaxAid advises only those people on low incomes whose problems cannot be resolved with HMRC.

Employment status issues: are you employed or self-employed?

CIS Subcontractor

Contractors have an obligation to decide if their workers are employed or self-employed.

Each contract must be taken on its own. A worker may be self-employed in one contract and employed under the next contract. Being registered as a CIS subcontractor doesn’t mean that you will automatically be self-employed for all your work in the construction industry.

Normally the contractor will face a big tax bill if HMRC decides that the contractor’s workers are employee and not subcontractors. But even as a subcontractor you need to take care. If you have any doubts about your employment status, you should contact HMRC or take professional advice.

It is particularly important to take independent advice if you are offered work via an Umbrella Company, as a member of a partnership, or via an agency.

See also https://www.gov.uk/employment-status