Here’s How You Check your Employment Status for Tax

Here’s How You Check your Employment Status for Tax

It’s really important for you to check your employment status. If you figure out your employment status, it’s certainly going to help you figure out what laws are applicable to you as a worker, employed or as self-employed personnel as per HMRC. No matter whoever you are, you can get instant help from our chartered accountants in London to sort out your employment status and taxes based on it.

How to Check Employment Status?

Your employment status determines your rights and responsibilities at the workplace. You can easily figure that out by:

  • Figuring it out on the employment contract type.
  • Figuring out the way you receive your payment.
  • Know the person who is liable to pay your tax.
  • Know more about the rights and responsibilities your employer possesses.

If you’re looking forward to checking your employment status, you can use different tools given on the HMRC website. ‘Check your employment status for tax’ is one of the tools available on the website which you can use up definitely. You can also get additional guidance from HMRC to get additional support.

When Does the Tool Come in Handy?

So when does the tool come in handy? You can use the tool to check the employment status of not just you but also other people around you. The tool works perfectly well when:

  • You’ve hired a worker directly.
  • You’re coming to terms with your client along with your intermediary.
  • You’re part of the public authority and you’re hiring a worker, or a third party supplier to get the work done for you.
  • Some changes need to be implemented in the existing contract or service agreement.
  • There are certain disagreements between you and your worker and you want some clarification.

Are you ready to start out on a work-related engagement? Great. Here’s some detail you’ve got to know:

  • You need to know the details of the contract.
  • Know the responsibility of the workers.
  • Know what work needs to be done.
  • Know when, where and how the work is done.
  • Understand how the worker will be paid.
  • Know if the engagement includes any corporate benefits or reimbursements for expenses.

How Can Information Help you?

After submitting the aforementioned information, if you’re classified as self-employed, then register as self-employed with HMRC. It’s important to keep a track of your expenses and income, do self-assessment tax returns, and also pay taxes and national insurance where it’s due.

We hope we’ve made it clear why it’s important to check employment status for tax and how you can do it. Checking the employment status is something really very generic but you never know when you need the handy tool introduced by HMRC to check the employment status and get your documentation done right. It takes so much pressure off your head. Let’s take an example to understand this further.

Let’s say you’re looking forward to getting some construction work done, and you need to sign a contract with one of the workers. Once, you’ve made up your mind, the next step is to check the employment status of the worker before moving forward and asking them for a long term commitment. You go through the guidelines, and only then get ready to use the tool, and put the details to good use as a result. At times, the employer controls how they’re willing to use their employee/worker. You must have the clarity if the worker is already preoccupied with another task, as the nature of your job might require them to avidly concentrate on your job. Need further guidance with your contract as self-employed personnel, Accotax can help out. Reach out to us today!