Using SELF-EMPLOYED Workers?

Using self-employed workers doesn't need to be risky

If your company engages individuals on a self-employed basis, you are running the risk that HMRC or the worker could challenge this and argue they should be on PAYE. 

A lot of companies are broadly aware of this risk, but not the actual scale of the problem. Nor do they believe there is anything they can do about it so just carry on, hoping that it wont become an issue. 

If you play with fire, you will eventually get burnt and it is better to be proactive and address this issue, because you can improve your company’s position and ability to defend any such challenge. 

Trinity Tax can provide as much or as little assistance as you wish, whether you just want a second opinion, some guidance, a contract drafting or reviewing or your case defending.

How much could it cost?

If HMRC challenged your position, an example of the employer’s National Insurance liability alone is as follows:

20 self-employed people earning an average of £180 per day:

         * £125k per year (of employer’s NICs)

         * HMRC can go back 6 years so this equal £752k

         * Plus interest and penalties – over £1m in liabiliies

This may seem ridiculous, but unfortunately it is the reality of such a challenge. An employment status challenge is enough to put most companies out of business.

Why not deal with this monster lurking in the shadows and ensure you know the law, are compliant and don’t have to fear HMRC?

 

Need some tax advice? Give us call!

Calculate how much HMRC could claim against your company so you know whether it is an area that demands your attention.


If you are confident the individuals are self-employed why not test the water with us rather than HMRC. You can put your best arguments forward and we can tell you the kind of responses you can expect back from HMRC and see whether you remain confident after.

Call us to make sure you don't have to fear these challenges anymore

How about calculating how much a holiday pay claim could cost? This one is more straight forward

With such a large potential pay out, no-win, no-fee lawyers and no cost involved with making the claim. It may be a difficult temptation to resist.

Many business owners fear employment related claims more than HMRC. It may not stop at holiday pay either with increasing rights for unfair dismissal, sick pay, SMP/SPP, pensions, failure to provide written particulars and the list goes on.