Use your grey matter(7)
Blog Plummer Parsons | 9 March 2010
We at Plummer Parsons Chartered Accountants are already hearing of examples of how HMRC’s potential approach to “False Self Employment in the Construction Industry” might turn out in practice. A large contractor in the construction sector is facing a devastating bill for backdated PAYE and NIC following a recent inspection by HMRC. The Inspector has reclassified all self-employed subcontractors who have worked for the company in the last six years resulting in a bill for backdated duty, and interest in excess of £7million. The company intends to fight HMRC through the Tribunals and has mounted a defence.
This is an example of the consequences resulting from poorly drafted or non-existent written contracts, but it is also a timely reminder that HMRC remains focused on reclassifying employment status.
It would be a mistake to think that “false self employment” is a construction industry issue alone and all businesses engaging freelancers and contractors should ensure that their contracts and related paperwork are in order. We at Plummer Parsons accountants are urging our clients to look at the affairs and get their ‘house in order’.
Don’t get caught out by the legislation. If you have any queries please do not hesitate to contact our specialist in this area Ian Killick (Senior Partner) at Plummer Parsons Hailsham office on 01323 846622 or Email him on ian.killick@plummer-parsons.co.uk.
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