HND所得税报告IncomeTax.doc

1.0 Introduction To Jessie: In this case, Jessie would like to know the discrepancy between self-employment and employment , she comes to ask you for the advice which she decides to agree or reject the position. In this letter, there will be more minutia to discuss in order to give more proper advice to Jessie about her employment status and relevant tax affairs. The issues are as follows: 2.0 Issues Firstly, you should make out of the different between a contract of service and a contract for service. The law makes a distinction between a contract of service and a contract for service. Basically, a contract of service applies to an employee-employer relationship, and it’s fit for employed .They make use of PAYE system. while a contract for service applies in the case of an independent sub-contractor, and it’s fit for self-employed. They make use of SATR system. This distinction is most important as protection of employment legislation does not apply to independent subcontractors – with the exception of the Safety, Health Welfare Art Work Act, 1989 and the Equality Act 1998. The key test to be applied when trying to establish a taxpayer’s status in cases like these is concerned with the nature of the contract between the taxpayer and the person who is paying for the work done by that taxpayer. There are two possibilities: A. If it can be shown that contract of service exists, the taxpayer is regarded as an employee who is in service to an employer. B. If it can been shown that a contract for service exists, then the taxpayer is regarded as self-employed person who is rendering services to a client. Secondly, you need to recognize the criteria that would be used to decide whether or not you were employed by Abertay Hydro. The main criteria are as follows: Control. The more control that the person who is paying for the work has over the person who is doing the work, the more likely it is that a contract of service exists. It will be Employed if employer decides h