Question
a. Distinguish between Contract of Service and Contract for Services. John Johnson is sports director at Sun Sand Hotel on the north coast. He has
a. Distinguish between Contract of Service and Contract for Services.
John Johnson is sports director at Sun Sand Hotel on the north coast. He has set up a company called Fun Fun Ltd. and he has asked Sun Sand Hotel to pay his contract sum directly to Fun Fun Ltd. Mr. Johnson has no other clients. He does not use his own equipment. He has an assistant whom he pays.
b. Would you classify Mr. Johnsons employment as a contract of service or a contract for services? Give reasons for your answer and state whether Mr. Johnson should be paid gross or net of taxes.
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