Tax employment status
What is employment status and why is it important?
If you decide to take on a personal assistant (PA), one of the first things you will need to do is work out what their tax employment status is. Employment status is also important for employment law rights, but status for employment law is not the same as for tax. You must look at your PA’s status for tax and employment law separately as they will not necessarily be the same. See our employment law section for more information about status and employment law.
What is tax employment status?
Employment status for tax means whether your PA is employed or self-employed.
Why is tax employment status important?
Tax employment status is very important because employed and self-employed people pay different tax and National Insurance contributions. If tax employment status is wrong, it may mean the wrong amount and/or type of tax and National Insurance contributions are being paid. Tax employment status also affects how you should pay your PA and whether or not you have to pay any National Insurance contributions as a consequence of having a PA.
The remainder of this section of the site:
- Explains the difference between employment and self-employment and what it means for you and your PA (types of employment status section)
- Explains how to decide the employment status of your PA and where to get help with this (deciding the status of your personal assistant section)
- Explains the different rules that apply to certain groups of people such as agency workers and family members (employment status exceptions section)
- Explains the consequences from a tax and National Insurance point of view of getting tax employment status wrong.