Newth Talks Tax - Tax writer of the year John Newth solves your tax questions

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Employment status

Peter Kilvington raised a detailed query regarding a construction industry client, in his query of 21 November 2006. A PAYE inspection took place as long ago as August 2004, where the employment status of some workers was questioned.

A follow up letter in the form of the standard letter as per the Employment Status Manual was issued to the client in December 2005. This letter gave the opinion that some workers were employees based on the Employment Status Indicator software. The reasons given were (according to HMRC) low indication of substitution, medium indication of control and medium indication o...

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