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.

The existence of these basic mutual obligations in a contract is a requirement for there to be an engagement for work for tax purposes. Their presence is not sufficient on its own to determine if the contract is one of employment (service) or of self-employment (services). The absence of mutual obligations however is indicative of self-employment. For the right approach see ESM0543 and ESM2330