You can take advantage of HMRC’s new web tool that enables you to determine your employment status.

The employment status indicator (ESI) that is now available on HMRC’s website will greatly benefit contractors, especially those within the Construction Industry Scheme (CIS). Determining whether you are classed as a contractor or employee can sometimes not be black and white as there are so many factors to consider. This tool is therefore an excellent idea.

However, those who do use it need to be aware of the possible consequences. If the tool is unable to conclude an employment status from the questions that are asked, it suggests that you refer the particular circumstances to an HMRC Status Inspector.

This could consequently lead to a visit from HMRC, therefore it is advisable that great care is taken when filling in the form or that you seek our advice if you are unsure of any details. The outcome is determined solely on the information you submit and it is important to note that ESI will only offer an indication of employment status. It does not provide a definitive or legally binding conclusion.