The obligation of a contractor to provide their own equipment will generally be a strong indicator of self-employment1. However this test can only be a guide and is not an absolute indication. It must also be tempered by the fact that many employees in manual trades traditionally provide their own hand tools and small items of equipment without there being any suggestion that they are self-employed. The view of HMRC is set out in the Employment Status Manual.
Provision of equipment is of most significance when it is fundamental to the service provided and sufficiently important to affect the substance of the contract.
In the construction industry, someone who is required to and does provide major items of equipment, which is a fundamental requirement of the contract,
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