Employment Status Urban Myths – What’s True, & what’s False?
11 March 2019
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11 March 2019
Nick Pilgrim, Managing Director at EEBS Limited, a leading payroll specialist for the Construction Industry looks at a few popular urban myths concerning the Employment Status of individuals within the industry.
Whilst talking to delegates at a number of National Trade Shows recently it became apparent that a massive gap in understanding still exists within the industry regarding the establishment of genuine self-employment. Many popular urban myths surround the issue, and this confuses peoples understanding even further.
The four most common statements that we heard during the seminars were:
ALL of these statements grow from a seed of plausibility, but only one has a chance of winning the argument with HMRC!!
Let’s take a brief look at how the Revenue decide if a tradesmen is employed, or self-employed. IF:
then HMRC are extremely likely to find that these tradesmen are your employees – in spite of the assertions like those above you may make!
So, with reference to urban myths above:
So is there an alternative?
Yes! In spite of HMRC’s ongoing attempts to limit the employment arrangements options for contractors, it is still entirely possible to guarantee your sub-contractors self-employed status via specialist intermediary suppliers.
But is it safe?
As in any industry, not all solution providers are equal. Yes it is safe to outsource the supply of your sub-contractors, provided you take advice from a reputable, audited and compliant supplier (Ideally one who has never had their model challenged by HMRC, who are audited by the Aspire Partnership (the UK’s leading Construction Tax Specialists) and whose compliance is backed by a comprehensive guarantee!).
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