Individual - employee & self-employed - same company

November11 Registered Posts: 19 New contributor 🐸
I have recently taken on a small company limited by guarantee....
The company operates a payroll system through which the director and an employee receive a monthly wage with regard to all administrative tasks undertaken.(HMRC ESI tool indicates that they are employees)
Also, they provide their teaching skills when running acting classes (the principal activity of the company is that of performing artists) and for this they view themselves as self-employed contractors (HMRC ESI tool indicates that they are self-employed) and account for fees received via their self-assessment return.
This is not a situation I am familiar with and I just want to ascertain that it is possible for an individual to be a employee and a self-employed contractor for the same company?
I have rung HMRC helplines and they have forwarded me to the ACAS helpline which has directed me back to HMRC helpline :-(


  • jamesm96
    jamesm96 Registered Posts: 523
    Saw your comment on the 'invoicing' so thought I'd come and see what this was about...

    I suppose I'd say it's not impossible to be both an employee and a subcontractor; if you imagine the scenario of a self employed window cleaner who also does Saturday work at Tesco, if he tendered for (and won) the window cleaning work it'd be quite acceptable to pay him as a self employed subcontractor for the windows but an employee for the Saturday work, given the completely different nature and conditions of the respective roles.

    I think the same principle applies here. I'd say, though, that for a definitive answer you can call HMRCs agent priority line and ask to speak to someone in their technical support team re. Employment Status of a person with two distinct roles; they'll give you a good 'yea' or 'nay'.
  • JodieR
    JodieR Registered Posts: 1,002 Beyond epic contributor 🧙‍♂️
    Not a difinitve answer to your question, but this thread is quite relevant...
  • November11
    November11 Registered Posts: 19 New contributor 🐸
    Many thanks for the good advice...much appreciated :-)
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