Staffing
Using self-employed plant operators and drivers: employment status, CIS as a contractor, contracts, competence and insurance checks, and when to employ instead.
Key takeaways
Whether someone is self-employed depends on the facts, not the label. HMRC and tribunals look at things like:
| Factor | Points to self-employment | Points to employment |
|---|---|---|
| Control | They decide how to do the work | You direct how, when and where |
| Substitution | They can send someone else | Must do the work personally |
| Obligation | Can turn work down | Expected to take work offered |
| Financial risk | Own tools, insurance, can make a loss | You provide everything |
| Integration | In business on their own account, several clients | Part of your team, your uniform |
HMRC's online status tool is a useful starting point. Getting status wrong can mean backdated PAYE, National Insurance and employment rights claims.
Register as a contractor
With HMRC, if you pay subcontractors for construction work.
Verify each subcontractor
Through HMRC, to find the deduction rate.
Deduct and pay
20% registered, 30% unregistered, nothing for gross payment status.
Monthly return
By the 19th of each month, with statements to subcontractors.
If an operator works only for you, full-time, under your direction, using your machines, employment is usually more accurate and often more stable. See hiring your first employee.
FAQs
Keep going
Hiring your first plant hire employee
Who to hire first and the legal steps.
Read guide →
VAT, PAYE and CIS for plant hire businesses
When to register, and how CIS treats operated and bare hire.
Read guide →
Adding operated plant hire services
Add operators, pricing, CIS and RAMS.
Read guide →
CPCS, NPORS and plant operator cards explained
Red and blue cards, NVQs and what to check at handover.
Read guide →
This guide is general information for people setting up a plant hire business in the UK. It is not legal, tax, insurance or financial advice. Rules and thresholds change, so check current guidance on GOV.UK and take advice from an accountant, solicitor or broker before acting.