An employee is an individual who works for a company and holds a contract of employment. If you are an employee, your contract should include the following information, as well as anything that specifically pertains to your line of work and role:
Not everyone who works for a company qualifies as an employee – some may be hired on a freelance basis or as a subcontractor. It’s important to check on your employment status as you will need to know this to check on your entitlements as well as your tax obligations. As an employee, your employer will pay your tax out of your wages on your behalf via PAYE, but if you are a freelancer, you’ll be responsible for completing a Self Assessment.
There are some occasions where you may need to complete a Self Assessment as an employee, however. Here are some circumstances where this may be the case:
To learn more about Child Benefit entitlements, visit our helpful glossary page today!
PAYE stands for Pay As You Earn, and is tax taken automatically from your earnings by your employer to pay your income tax. For more information, visit the PAYE glossary page!