Employees work under a contract of service whereas the self employed work under a contract for services. There is nothing in the taxes acts which defines a contract of service or of a contract for services it depends upon the relationship of the parties.
This page contains and reproduces extracts of advice from HM Revenue and Customs (HMRC) on employment status:
As a general guide as to whether a worker is an employee or self-employed; if the answer is 'Yes' to all of the following questions, then the worker is probably an employee:
- Do they have to do the work themselves?
- Can someone tell them at any time what to do, where to carry out the work or when and how to do it?
- Can they work a set amount of hours?
- Can someone move them from task to task?
- Are they paid by the hour,...