- employees, hired directly by the organisation
- workers (for example, casual, agency or freelance workers, performing services personally for the organisation, or working on a seasonal basis)
- the self-employed (for example, contractors).
During 2017, Matthew Taylor published a review which, amongst other things, suggested that employment status needed clarifying and the 'worker' category should be renamed 'dependent contractor'.
Following a consultation on this matter, the government’s ‘Good Work Plan’ released in December 2018 has confirmed that legislation will be introduced to clarify current employment status tests. There will also be updates made to current guidance and online tests which are available to determine status.
Additional changes were also announced within the plan, although these also require additional legislation. These include making a right to a written statement of main terms a day-one right, increasing the required information which has to be included on written statements and providing a right for all workers to request a more stable contract.
The IR35 tax rules governing off-payroll working in the public sector changed on 6 April 2017. From this date, responsibility for deciding whether the rules apply shifts from the worker’s intermediary company to the public body, agency, or third party paying the intermediary, which will then be responsible for deducting relevant tax and NICs from the fee it pays to the intermediary organisation where appropriate.