This guide is for registering as self-employed as an Isle of Man resident.

The first thing to check is if you are indeed self-employed or should be registered as an employee. The government website lists five checks to qualify as self-employed.

  • Check 1 Do you have the final say in how your business is run?
  • Check 2 Do you risk your own money in the business?
  • Check 3 Are you responsible for meeting the losses as well as taking the profits?
  • Check 4 Are you free to hire other people, on your own terms, to complete the work you have taken on? Do you pay them out of your own pocket?
  • Check 5 Do you provide the major items of equipment you need to do your job, not just smaller tools which many employees will provide for themselves?

If your answer is not yes to all of these, it is a good idea to contact the Income Tax Division to discuss your circumstances. You get a number of protections as an employee that are not available if you are self-employed.

If the answer is yes to all the checks, then it sounds like you are self-employed so the next step is to register. To do that you wil need to fill out the Self-Employed Forms from the government website to change your status.

If you pay subcontractors, there is a little more to do to register and for some subcontractors you will need to make income tax deductions for them as well. If you want a hand our Smart Pay Payroll can help with the calculations.