Employee (Paye) - Advantages and disadvantages of the "employee" status

Many people have the option to choose between being an employee or being self-employed, and naturally, they want to know which one is “better”. Well, the answer to this question is not simple, as different statuses come with their specific advantages and disadvantages. So choosing the right status really depends on individual situations and workplaces. Therefore, the following list should not be considered as generally valid; it is more of a guideline. 

This section is not intended to provide all the details of each point in the list, however, once you read through the “employee” and “self-employed” pages, you will have a better understanding of which status is more appropriate for you.

Pros and cons of employee status:

  • paid leave
  • paid sick leave
  • paid maternity leave
  • predictable monthly income – except for some special cases, such as situations where the employer does not indicate weekly working hours, for example: zero hour contract
  • filing a tax return is not necessary (with some exceptions), since the income verification documents provide information on employment, earnings and deducted tax
  • the only costs are tax and NI – from which there may be exceptions in certain cases, however, employers must be put this in writing, and employees need to accept it
  • usually fixed working time
  • having managers
  • working with instructions