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Important Information for Freelancers - HMRC Investigation...!
14-8-2009 |
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If you are currently working on a contract basis through a Managed Service Company or umbrella company, you need to read this.
On 6th August 2009, HMRC issued a Revenue and Customs Brief number 50/09.
The brief announces that HMRC noticed the increase in the number of arrangements used by some Employment Businesses and umbrella companies to obtain a tax and National Insurance advantage for temporary workers. It says that “In many cases such schemes are marketed to workers as representing a tax and National Insurance saving for the worker. However, the major saving is not to the worker, rather to the party who would bear the higher employer’s National Insurance contributions costs if it were not for this arrangement.”
It goes on to state that HMRC, together with other Government Departments, are investigating businesses that are acting in contravention of legislation and will penalise breaches of law as they are identified.
The brief is targeted at not only the businesses supplying temporary workers and their end user businesses, but also the temporary workers themselves.
You can view the full brief here: http://www.hmrc.gov.uk/briefs/income-tax/brief5009.htm
At PDR Partners we offer our contractors a permanent contract of employment. Salaries have PAYE and NI deducted at source and we pay employer’s National Insurance contributions. This way, all three parties involved in the secondment arrangement are fully compliant with fiscal legislation.
Best for Clients ~ Best for Us ~ Best for You!
Copyright © 2009 PDR Partners, incorporating Bob Gammon Associates. |
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