Is your Self Employed status correct?

Will new tax rules change the way we work? 

On the 6th of April 2020 new HMRC IR35 rules came in to effect adding another layer of burden to companies already dealing with the difficulties created by the COVID-19 pandemic.

If you fail to meet the criteria and have a tax investigation the "Employer" may be fined and required to settle any back pay due on Income Tax and National Insurance payments for what are considered “Employed” staff.  

You need to understand how this legislation may affect any future "employment/contract" agreements. 

HMRC have outlined three main criteria test contractors would need to pass to maintain self-employed status. 

1. CONTROL

Does your client determine what you do, when you do it and where you do it? 

2. PERSONAL SERVICES

Are you required to carry out the work yourself or can you send someone else? 

3. MUTUALITY OF OBLIGATION  

Is your client obliged to offer you work and are you obliged to accept it? 

Ben Schaefer of Crunch Accounting explains in the video below. More detailed explanations of the three tests can be found on our blog or by clicking on the links above.

If in any doubt we strongly advise you to seek independent professional advice to ensure you don't get in to trouble with the HMRC who can impose fines and demand back payment of income tax and National Insurance contributions. 

Arbsites Ltd makes no representations or warranties in relation to employment offered or information provided by advertisers. It is the applicant’s duty to fully investigate any company and agree terms before accepting employment.