It is HMRC's prerogative to protect tax and NIC sums due to the Exchequer, as well as seeking to ensure that individuals' employment or worker rights (where due) are preserved. There may sometimes be a difference of opinion (usually between HMRC and the work hirer, however the individual work provider may also be involved). This is typically where HMRC argues that an engagement, ostensibly argued to be self-employed under the contract, in truth amounts to an employment. If so, HMRC's usual initial approach will be to seek to negotiate a mutually agreeable solution.
The most common example where such a difference of opinion may arise is during an Employer Compliance Review by HMRC, see A6.901. However a dispute may also arise from information coming into HMRC's possession by other means, including (more occasionally) complaints of dissatisfaction by the worker or work provider(s).
Relevance of other factors including employment tribunals in HMRC disputes
When making an employment status decision , an HMRC officer
To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to Tolley+™ Research or register for a free trial
Web page updated on 17 Mar 2025 14:25