§ Mr. Neil Hamiltonasked the Chancellor of the Exchequer if he will publish in the Official Report the general criteria used by tax inspectors for distinguishing between employment and self-employment for income tax purposes.
§ Mr. MooreAs I stated in my written answer to an earlier question by my hon. Friend—[Vol. 50, c.25]— the criteria used by Inspectors of Taxes and taxpayers' professional advisers to determine employment status for tax, as for other purposes, have been independently established by the courts as a matter of general law. The criteria include such questions as who controls the manner in which the duties are performed, who bears the financial risk, who supplies equipment, and how the payment for services is made. None of them is conclusive in itself, and the importance of any single factor may vary from case to case. The Inland Revenue is preparing a guidance note for publication which will explain the relevant criteria and help taxpayers to understand the issues involved.