Employment Status – Checklist & Assessment Form

The City Council has a duty to ensure that people engaged in a self employed capacity are in fact self employed and not deemed to be an employee of the City Council.

This form will must be completed in order for a decision on employment status to be made, and should be completed by City Council person responsible for the engagement and the individual being engaged.

If an individual is deemed to be an employee, the individual will be subject to PAYE and will need to be paid through payroll. This ensures the correct amount of deductions are made and paid to HM revenue & Customs.

If an individual is self employed no deductions will be made and the individual will be responsible for declaring and paying contributions directly to HM Revenue & Customs.

If an individual has been engaged in a self employed capacity before it does not necessarily mean that they will be self employed in the future, it is the terms and conditions of each contract that determine employment status, therefore, an assessment form must be completed for each engagement.

A self employment number is not sufficient evidence to pay someone as self employed, the terms and conditions of each contract need to be considered in order for a decision to be made.

A Limited company is not subject to PAYE and payments can be made on receipt of a valid invoice.

Guide to completing this form

1.  Part 1 to be completed by the City Council employee responsible for the engagement.

o  This part will help you to decide if the individual is self employed or an employee.

o  If you have completed this part and are still unable to determine employment status, you can use the employment status indicator tool on HMRC’s website. www.hmrc.gov,uk/calcs/esi.htm

This tool will guide you through some basic questions and give you a ruling on the employments status of the individual.

2.  If the individual is employed, they will need to complete sections 1, 2, 3, 4, and 5 of part 2 for statutory deductions to be made, sign and return the form in order to be set up as an employee.

3.  If the individual is self employed all sections of part 2 should be completed, signed and returned.

4.  A copy of this form should be retained by the relevant department and a copy sent to the taxation advisor, who will retain for HMRC inspection.

Part 1 – To be completed by the City Council employee responsible for the engagement.

Employed self employed checklist

Department ______Section ______

Name of officer ______Job Title ______

Name of individual ______

Yes/No / Employed
Does the Individual have to do the work themselves?
Can someone tell them at any time what to do, where to carry
out the work or when and how to do it?
Do they work a set amount of hours?
Can someone move them from task to task?
Are they paid by the hour, week or month?
Can they get overtime pay or bonus pay?
If you have answered yes to the above questions it will usually mean
that the Individual is an employee.
Self Employed
Can they hire someone to do the work for them or engage
Helpers at their own expense?
Do they risk their own money?
Do they provide the main items of equipment they need to do their
Job (not just the small tools many employees provide)?
Do they agree to do a job for a fixed price regardless of how long the job
may take?
Can they decide what work to do, how and when to do the work and
where to provide the services?
Do they regularly work for a number of different people?
Do they have to correct unsatisfactory work in their own time and at their
own expense?
If you have answered yes to the above questions the individual will
usually be self employed.

Employed Complete sections1, 2, 3 4 & 5 of part 2.

Self Employed Complete all sections of part 2.

Part 2 – To be completed by the individual being engaged.

If the City Council officer who has engaged you has told you that you are self employed please fill out all sections of part 2 and return with your invoice.

If you have been informed that you are deemed to be an employee please fill out sections 1, 2, 3, 4 and 5 and return with your invoice. Your payment will be subject to statutory deductions.

An incomplete form will be returned to you and your payment may be delayed.

1 / Your Full Name
2 / Contact Address (including Postcode)
3 / Contact Telephone Number
4 / Your National Insurance Number
5 / Date of Birth
6 / Name/Address of tax office
7 / Date registered as Self Employed with HMRC (or self employed number)
8 / Describe the work you self employment registration relates to
9 / Describe the work undertaken on this occasion
10 / If you are a Limited Company please quote your company registration number
For existing City Council Employees please provide your pay number

A self employed person must register with HM Revenue & Customs within 3 months of becoming self employed, failure to do so may result in a penalty from HMRC. These forms are retained by the City Council and are available to HM Revenue & Customs for inspection.

I certify the above information supplied by me is correct to the best of my knowledge.

Signed______Dated______

Please return to: