Accountant sub-contractor self-employment status
I have just been told that, apparently, HMRC are clamping down on the self-employed status of accountants/book-keepers/tax advisers who provide their services on a sub-contract basis to firms of accountants.
Has anyone heard of such things recently?
Cheers
Not heard of this specifically
But any such 'clamp down' could be due to coming across a firm that has no staff but only sub-contratcors who are employees in all but name. Having found one person who claims to be self emplotyed whilst working largely or exclusively for one firm, HMRC would be likely to look into the status of other sub-contrators working for that firm and possibly others in the area too.
If your sub-contractors are genuinely in business on their own account, are not treated as quasi employees and are not held out to clients as employees you shoul;d have nothing to worry about. Of course it's not enought that someone is registered as self-employed with HMRC and pays tax and NICs on this basis. Nor is it enough that they work for a number of people each week/month/year. What matters is the basis on which they work for each of those businesses. It is perfectly possible to be self employed for many of one's engagements but a part-time employee for one or two others.
Mark Lee
TaxAdviceNetwork.co.uk