ESM4133 - Particular Occupations: Entertainment Industry: TV and Radio Presenters: Factors in Determining Employment Status for Tax: Mutuality of Obligation
Mutuality of obligation refers to the requirement of a “wage/work bargain�. In its simplest form, mutuality of obligation means an agreement by the recipient of services to pay a wage for work which the individual is required to carry out through their own personal work or skill. See ESM0543
Mutuality of obligation is normally considered to be present when a presenter is working under contract with broadcasters and production companies. This includes circumstances where an individual has a number of “one off� or short engagements with the company.
»Ê¹ÚÌåÓýapp existence of these basic mutual obligations in a contract is a requirement for there to be an engagement for work for tax purposes. »Ê¹ÚÌåÓýappir presence is not sufficient on its own to determine if the contract is one of employment (service) or of self-employment (services). »Ê¹ÚÌåÓýapp absence of mutual obligations however is indicative of self-employment. For the right approach see ESM0543 and ESM2330