Self employed query

[John_Duffy]

You need to read up on IR35. Plenty of info out there and no point reproducing it here. But just because you have worked on a self-employed basis or even as a limited company for many years, does not mean that HMRC will not pursue you for unpaid tax and NI under what they regard as "disguised employment".

The problem is that there are no hard and fast rules which can be universally applied, but there is now a series of tests which can be used to gauge your exposure. In the software contracting arena this is now old news, but IR35 can it seems apply to any industry. You need to take this seriously and mitigate against the risks involved.

 

[CompoSimmonite]

You need to read up on IR35. Plenty of info out there and no point reproducing it here. But just because you have worked on a self-employed basis or even as a limited company for many years, does not mean that HMRC will not pursue you for unpaid tax and NI under what they regard as "disguised employment".

Actually unless things have changed since I retired HMRC will persue the employer for the unpaid tax & NIC and not the person what has been paid "gross". It's treated in the same way as paying somebody "cash in hand" - ie the onus is on the employer to operate PAYE unless the are 100% sure it's not applicable.

Paul H

 

[Shox Dr]

Actually unless things have changed since I retired HMRC will persue the employer for the unpaid tax & NIC and not the person what has been paid "gross". It's treated in the same way as paying somebody "cash in hand" - ie the onus is on the employer to operate PAYE unless the are 100% sure it's not applicable.

Paul H

Very true, when I first became self employed (17/8/87*)the only way the ILR would let me was on a C15s this was a voucher system, this meant every time I was paid I could only have 150 untaxed, over that the "employer" had to deduct 25%.

Problem was the guy I worked for couldn't be arsed to work it out so refused to do it, so I just filled out the vouchers so.

When it came round to pay my tax that yr, the Taxman should had been x amount by matey boy. They hadn't of coarse, so they fined him the amount, I didn't have to pay that amount so came out 25% better off that year




Probably the best decision I've ever made