Employed v Self-employed
(inc non-executive directorships)

Another area of great focus is the age old question of whether or not a particular individual or individuals have been properly engaged on a self-employed basis

It has been widely published by Government that it believes that there are a number of people engaged incorrectly as self-employed people under the term "False self-employment" which suggests that companies engaging people on a self-employed basis are doing so, in some instances, as a tax dodge.

Our experience has been that this is not the case, in the majority of the cases individuals have been properly engaged on a self-employed basis. It has to be said though, there have been some occasions where it is clear that the status of self-employed has been incorrect but this is not necessarily because of a tax dodge but circumstance.

If HMRC is able to successfully challenge the self-employment status of your workers, this can lead to significant liabilities for the company and not the self-employed worker as one would expect. It is the engagers responsibility to get it right and if it doesn't the buck stops with them.

We can undertake reviews of the arrangements currently in place, using our experience of how HMRC approach such reviews, and make relevant recommendations to put right what, perhaps, has not been going quite right.