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Commentary

E8.1142 Categorisation pitfalls

Personal and employment tax

Three warnings must be given in relation to categorisation issues.

The first is that a change in a person's status from employed to self-employed will result in the loss of unemployment benefit (contributory Jobseeker's Allowance or 'JSA') cover and the right to claim Statutory Sick Pay, higher rate Statutory Maternity Pay and Statutory Adoption Pay, Statutory Paternity Pay, Statutory Shared Parental Pay and any further accrual of S2P (up to April 2016) over any which might already have been earned.

The second is that the possibility of categorisation by regulation should not be ignored. A detailed discussion of the Social Security (Categorisation of Earners) Regulations1 is outside the scope of this division, but it should be borne in mind that office cleaners, cleaners of telephone apparatus, workers paid through an agency agreement (with certain exceptions, including actors, singers, musicians and other entertainers and fashion, photographic or artists' models), and ministers of religion who, on general principles, appear to be self-employed, may in fact be treated as employed earners. Certain teachers and instructors were included in the list until

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