I was recently in receipt of a 'shoebox' by a new client which seemed a lot simpler than what I am used to seeing.
Within this pack was a CIS certificate for the year showing the payments and deductions for this 'sub-contractor'. However, the individual in question had previously been an employee with this firm and the nature of the work suggests employment rather than self-employment. Anyway, the fact that there were no materials and very little in the way of tools etc. explains the lightness of the records but also further points to employment.
All I can do is point this out to the client, but who is really responsible for getting the employment status right?.......The company or the individual??
If it turns out somewhere down the line that the employer/contractor is made to correct the treatment of the sub-contractors, they will be liable for back-taxes but is there any problem in this scenario for the individual. Are there any risks to the individual? I have read that the individual is responsible for their employment status.....but what can you do if this is the way in which they want to employ you and what are you supposed to do??
I'm not sure about the penalties but on HMRC it states it is the employers responsibility to determine whether they are employed/self employed. Makes sense I guess as it is usually in the employers favour to have people self employed to avoid NI etc
Great thanks.....I thought that the main beneficiary (employer) would be the responsible party. I can mention my concern with the client but that it is not really his problem. Thanks.
