Employee

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:

  • Your pay – whether per hour or per annum
  • Your working hours – whether set hours or a number of hours per week
  • Your holiday entitlement per annum
  • Your entitlements to sick pay – whether this is just Statutory Sick Pay or discretionary pay from your employer
  • Your notice period – how long you or your employer must give in order to end your employment.

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:

  • Untaxed side income, such as from freelancing, renting out a property, income from savings, investments and dividends, or foreign income
  • You’re claiming a tax relief or paying the High Income Child Benefit Charge
  • You earn over £100,000

Frequently Asked Questions

Search More Terms

News & Insights

6 days ago
Are you considering whether to buy or lease a company vehicle?  Both options have their pros and cons, and it’s impo...
Are you considering whether to buy or lease a company vehicle?  Both options have their pros and cons, and it’s important to know the tax implications beforehand.  Read on to find out how each decision affects your business! ...
1 week ago
Received a notice about an overdue confirmation statement? Don’t worry! It’s a common occurrence and, thankfully...
Received a notice about an overdue confirmation statement? Don’t worry! It’s a common occurrence and, thankfully, doesn’t come with late filing fees. Let’s walk through how you can quickly and easily file your limi...
2 weeks ago
With the Labour Party coming to power, there are a lot of questions and uncertainty around what the labour government ef...
With the Labour Party coming to power, there are a lot of questions and uncertainty around what the labour government effect on businesses will be and what the economy may look like, given that they haven’t been in power since 2...
2 weeks ago
Have you ever asked yourself, ‘what happens if my business has a HMRC enquiry’? Receiving a letter from HMRC stating...
Have you ever asked yourself, ‘what happens if my business has a HMRC enquiry’? Receiving a letter from HMRC stating that they want to check the accuracy of your most recent accounts can be a very daunting experience. Even if ...
2 weeks ago
Many UK businesses ask themselves the question, ‘why is My Company Tax Bill So High?’. You’ve probably asked yours...
Many UK businesses ask themselves the question, ‘why is My Company Tax Bill So High?’. You’ve probably asked yourself this question too. Especially if you’ve found your way to this article. This article aims at highlightin...
3 weeks ago
Running a business in the current economic climate can be challenging so the idea of voluntarily registering for another...
Running a business in the current economic climate can be challenging so the idea of voluntarily registering for another tax may seem counterintuitive at first.  However, many savvy business owners are leveraging the benefits...
3 weeks ago
Most limited company directors have a director’s loan account (DLA), but not everyone understands what it is. In t...
Most limited company directors have a director’s loan account (DLA), but not everyone understands what it is. In this article, we will outline the main concept of the director’s loan account and how it affects both you...
4 weeks ago
One of the reasons many people start their own business is for the freedom and flexibility that comes with being your ow...
One of the reasons many people start their own business is for the freedom and flexibility that comes with being your own boss. But what happens when you are looking to start a family? Are you entitled to Maternity pay? If you are...

Subscribe Now

Receive our latest news & insights directly to your fingertips.