Tests indicate employment

The taxpayer was a property development and letting business. In 2004 it took on F as a general labourer on a flexible basis.

It was agreed that F would be treated as self-employed. Although it was necessary to supervise his work initially because he was not skilled at the outset it became less necessary as he became more experienced.

He was paid on a weekly basis and received no holiday or sickness entitlement. Each job he undertook was arranged individually with the taxpayer stating the amount that would be paid.

The taxpayer supplied the heavy equipment but F provided his own hand tools. He was covered by the taxpayer’s insurance while working on the taxpayer’s properties.

HMRC disagreed that F was self-employed and issued determinations on the employer stating F was an employee and PAYE and National Insurance should be paid.

The taxpayer appealed.