The American method

The infamous Inland Revenue press release IR35 has highlighted the fact that United Kingdom statutory law does not distinguish between the employed person or the self-employed person and does not define self employment.

One need hardly mention that this fact has produced a recurring argument between taxpayers and the Inland Revenue and an increasing number of cases heard by the courts not surprisingly some of them concerning employment law and industrial relations.

The United Kingdom Inland Revenue is very fond of its badges of trade and the particular spin that the department puts on various case decisions which it contends support its views.

The United States Internal Revenue Service takes into account no less than 20 criteria in determining whether a worker is an independent contractor (which it terms a 'guru') or a permanent employee.

Quite why the department has chosen the word guru is something...