Are YOU at risk from HMRC?
The four simple questions:
Question 1
Do you have a written contract in place with the sub-contractor?
Question 2
Can the sub-contractor make a loss as well as well profit (answer no if you pay a date rate)
Question 3
Does the sub-contractor supply their own plant and material?
Question 4
Can you prove the sub-contractors have other clients?
If you have answered NO to the above questions then HMRC will class these arrangements as employment NOT self-employment!
You could be fined up to 6 years for non-payment of National Insurance for each sub-contractor paid.
Example of HMRC fines:
5 sub-contractors paid £140 per day = £700
(- £165 NI threshold) = £535
Each sub-contractor paid £535 per week
£117,000 fine
Unpaid National Insurance (14%) of £535 would amount to £75 per person per week x 5 = £375 x 52 weeks = £19,500 unpaid NI per year per person paid x 6 years (back dated) = That amounts to a fine of £117,000 plus interest.

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01245 493832
07719 065177
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