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Independent contractors or consultants - self-employment

If you agree with most of these statements below, then it is likely that you are self-employed:

• you bid or provide quotes to secure work
• you have specific targets or projects to complete, although you decide when and how to do the work
• you are not under direct supervision when you are working
• you do not have to perform the work personally - you can hire someone else to do the work or engage helpers at your own expense
• you submit invoices for work you have completed
• you are responsible for paying your own tax and National Insurance
• you do not receive any holiday pay or sick pay when you are unavailable for work
• you provide major items of tools, equipment or materials that are a fundamental requirement to complete a job
• you have to correct unsatisfactory work in your own time and at your own expense
• you are responsible for meeting any losses, as well as taking the profits from your work
• you provide your services, or could provide your services, to a number of different clients or customers
• you operate under a contract (maybe called a 'contract for services' or a 'consultancy agreement') which describes you as 'self-employed', a 'consultant' or an 'independent contractor'

The statements use the example of work done for a 'company'. However, they apply equally if you work for a sole trader, partnership or any other form of business organisation.

Example situation

If you are not sure whether you are self-employed, you can read the following example situation. If it describes something similar to your working arrangement, it is likely that you are self-employed.

Sue is a plumber. She works for a variety of different customers and provides quotes in order to win new business. She provides an overall time estimate for each job, but chooses what hours she is going to work. She is paid gross and pays her own tax and National Insurance.

She generally does the work herself and provides all of her own tools. However, if she is particularly busy, she calls in an assistant plumber to do the work - she is not obliged to do it all herself.

'Gross pay' is your pay before any deductions, for example tax or National Insurance.

Employment rights if you are self-employed

If you are genuinely self-employed you do not generally have any employment rights because you are, in effect, your own boss.

You will benefit from protection for your health and safety and, in some cases, protection against anti-discrimination.

Your rights and responsibilities are governed entirely by your contract with the party who engages you.

Where to get help

If the statements or example do not describe your work situation try reading the other articles in this section.

If you have read the other articles and you are still not clear contact Acas (the Advisory, Conciliation and Arbitration Service). Acas is able to offer free, confidential and impartial advice on all employment issues, including employment status.

• Acas (Advisory, Conciliation and Arbitration Service)

Useful contacts

• Acas (Advisory, Conciliation and Arbitration Service)

• Citizens Advice Bureau

• Jobcentre Plus

• businesslink.gov.uk Opens new window

• More useful contacts