HMRC has published an online self-assessment tool (questionnaire) that allows anyone to check their employment status for tax purposes.
It coincides with an important change in the rules affecting self-employed people who work in public sector organisations using a personal service contract.
From this month the organisation, not as previously the worker, will decide the worker’s status – whether they fall into IR35 (the intermediaries legislation) or are in effect the same as employees and pay tax through PAYE.
But HMRC says its tool can be used for current or future engagements in the public or private sector.
How will people and organisations will react to the public sector change?
It’s too early to say but predictions include: a) more self-employed people will look for business in the private sector; b) some will give up on the public sector altogether; c) those on public service contracts are likely to increase their charges; and d) those transferring to PAYE will gain from standard employee benefits including sick pay and pensions.