I know this is another self employed question but I would be grateful for others opinon on the following;
Business pays two people to help sell services on behalf of the company a set fee £1000 every month. They are repaid all petrol expenses, food, stationery etc every month. They are supplied with all equipment to do the job such as laptops. They are provided with email addresses to use on behalf of the company. They do not have any other clients and are not registered as self employed.
I am not sure the reasoning behind why they have been classed as ok for payment as self employment by firm of accountants.
Opinions gratefully received.
Thanks
Replies (4)
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Based on that information
They sound very much like employees.
There might be an essential bit of information being left out that does clinch it as self employed?
Employees
From the info you have given it would indicate that the two people are employees. Ask your accountant for their reasoning behind the advice to classify the two as self employed (and if they are correct in their advice, why have they not signed them up as new clients and helped them register as self-employed?!) It is you that is responsible for the tax/ni consequences of getting it wrong, so be sure that they have all the facts so that they can advise you correctly.
Wise words
"It is you that is responsible for the tax/ni consequences of getting it wrong, so be sure that they have all the facts so that they can advise you correctly."
Make sure that the accountants have given their opinion in writing so that you can blame them when this all goes horribly wrong.
Unless there is something missing from the information supplied, these people are employees and you are in breach of PAYE regulations. This means penalties and interest on the income tax and NICs that should have been paid.