One of the absolute employment essentials I talk with employers about is the exact details of their workers’ employment status and in particular the self-employed.
Whether they are employed or self-employed is not a matter of choice and depends on the terms and conditions of the role they carry out for you and the criteria HMRC use to correctly determine the employment status. HM Revenue and Customs (HMRC) are constantly on the lookout for ‘disguised employees’; that is those who claim self-employed status but are in fact employees.
HMRC has updated its list of tax cheats with individuals who are car dealers, electricians and hairdressers publicly named on its website.
Defaulters have been pulled up for evasion across a range of taxes including NI and PAYE. The list includes Kevin and Deborah Mann, who owe £78,557 after dodging tax whilst running Electrical Installation and Repairs business Moonshine Ltd and D K Express and others on the list include a Yorkshire-based hairdresser who owes £19,000, the owner of an Off Licence who must pay back £21,500 and a farmer who was given a penalty of some £10,000.
The move to name and shame has caused some controversy, with critics arguing that HMRC is focusing on ‘easy target’ small firms while some international corporations go unpunished.
Contact me now if you have any workers claiming to be self-employed, casual, temporary or any other status to make sure that HMRC doesn’t come knocking on your door and then have your company name at the top of the list for the next decade as a company worth visiting on a regular basis.