If you run your own business, other than through a company or in partnership, you are classified as self-employed for tax purposes. Your business might be a trade, profession or vocation.
The main distinguishing factor between having self-employed status and working as an employee is the existence of a ‘master–servant’ relationship. Sometimes it is difficult to draw a line between:
- employment (a contract for service); and
- self-employment (a contract for services).
Your business will have the trappings of self-employment if you:
- are paid a fixed fee, rather than by the hour;
- have no entitlement to paid holidays or sick leave;
- are responsible for any losses arising out of your services or the goods ...