Whilst there is no single test to determine whether or not a secretary is an employee of a private medical practice , HM Revenue & Customs suggest that business owners consider a selection of indicators in order to ensure correct tax treatment. The decision can be crucial as the business may be liable to additional national insurances if the services are being provided as an employee. Furthermore, the practice must consider additional legislative entitlements of an employee including holidays, pensions and sick pay.
HM Revenue & Customs advise that in determining the employment status of a secretary, the following questions should be considered:
- 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, week, or month?
- Can they get overtime pay or bonus payment?
If the majority of the answer to the questions above are ‘yes’, then the individual is most probably an employee and a payroll system would therefore be required.