HC Deb 20 May 1988 vol 133 cc612-3W
Mr. David Howell

To ask the Secretary of State for Employment whether the fact that a self-employed worker on the enterprise allowance scheme or otherwise has only one initial client for his services constitutes a valid reason for denying or refusing such work a self-employed status.

Mr. Cope

The employment status of workers for tax and national insurance purposes is determined on a case by case basis. The number of clients will be one of the factors taken into account in deciding whether a person is self-employed.

Mr. David Howell

To ask the Secretary of State for Employment what estimates he has of the number of employees who would become self-employed if employers and workers were able to agree such status, free from existing legal constraints.

Mr. Cope

Employers and employees are, in general, free to agree whatever contractual arrangements they wish. For tax and national insurance purposes, self-employed status applies only to those people who are genuinely taking the business risks associated with self-employment. We can make no estimate of the numbers who might be affected by a change in these arrangements.

Mr. David Howell

To ask the Secretary of State for Employment how many cases in which employed or self-employed status was in dispute came to the attention of officials in his Department in 1987.

Mr. Cope

Questions about employment or self-employment status are primarily a matter for the Inland Revenue and Department of Health and Social Security. However, Ministers received 30 representations about cases concerning employment status in 1987. This excludes cases and inquiries handled by the small firms service.