HM Revenue and Customs (as they are now called) use six basis tests in considering the employment status of an individual. These are true for all professions; not just aviation.
1. The nature of the contract - is it a contract for services or a contract of service.
2. Is "your customer" your only customer or do you have several. HMR&C will make allowances if you are starting up and haven't yet found a client base.
3. Do you have the right in your contract to send someone else as a replacement if you can't make it.
4. Do you use your own tools and equipment.
5. Do you partake in the risks and rewards of the business.
6. Do you choose when you work and how? Or does your "customer/employer" tell you how the job should be done?
The "self-employed" can save on tax in that their expenses are allowable as tax deductions i.e. getting to and from work. However, that person should be bearing all their such as medicals. The "customer" will save 12.8% on Employer's National Insurance as well. So, the HMR&C will always try to err towards employee status.
Hope that helps.
Cheers
Whirls
Thanks for the vote of confidence Gertrude!!!