I have a client who is self employed in the construction industry. He has worked with only one company for the last 14 months. Does this mean that technically he has employment status?
Hi Karen,
From a technical viewpoint it may well be that HMRC considers him employed, however from a practical view it really doesn't matter at this point to your client. Should HMRC deem him an employee, they will potentially chase his contractor for unpaid tax and NI on the 'net wages' they have paid your client. The responsibility is with the contractor for doing all the correct tests.
Sorry John, misunderstood you. It would take a brave person to say HMRC wouldn't be too fussed, the CIS, SC60 thing has been a hot potato for about 20 years. It seems to be continually getting revamped with more warnings that it is going to be enforced more stringently. In practice have I seen a clampdown, well not for the subbie I haven't. I guess if HMRC had more trained employees they could spend time on this.
Thinking about it, it would be better for the subby to be PAYE, as he would pay less tax, but I know the subbies that I do cant wait until April! They're the only ones keen for me to submit their SA
__________________
John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
