[UK] Guide To Determining Worker Status: Fact Finding / Evidence Gathering

With off-payroll working in the private sector becoming a reality in only a few weeks, a recent update to the Employment Status Manual (ESM) is interesting.  It is a guide to employers and engagers when conducting interviews with workers of what evidence and data gathering HMRC would look at to establish employment status 

The ESM0558 considers that the following issues may determine employment status:

  • The engager (the business, the activities etc)
  • The job itself (control, whether there is a contract, where and when the work is done etc)
  • The worker (the financial risk, the length of engagement etc 


Global Payroll Association Comment

The Employment Status Manual is intended to provide guidance on issues relating to the employment status of individuals.  This addition provides clarity to employers / engagers on how they should approach determining employment status.  The details are intended to help establish the facts at an interview. 

This is clarity that HMRC will look at the engagement right from the start (i.e. the recruitment process) to establish whether a worker falls within IR35 / off-payroll.  

Note that the contents are a source of ideas only to give an indication of the employment status.  When establishing employment status for deemed workers in off-payroll situations, HMRC may establish the facts of the engagement from both the person providing the work (the employer / engager) and the worker.