Are you a temporary self-employed worker/sole trader ?

Are you aware of the recent HMRC tax changes for temporary Self-Employed Workers &  Sole Traders as of 6th April 2014 ?

If you haven’t already done so, you need to act now to avoid paying  further tax !

To help guide you through the maze of the new HMRC tax regulations, Kirstie McPherson, our payroll expert, highlights what the new HMRC tax rules mean for temporary self-employed workers /sole  traders and  also outline the new ways of working as a  contractor with  Ltd.  

Kirstie has been with for a number of years and has responsibility for heading up and managing the excellent in-house payroll service we provide to clients and contractors.  Both clients and contractors who deal with Kirstie on a day-today basis have nothing but praise for her professional, customer-focused approach;

“….Kirstie’s always on hand to answer any payroll queries we have and always deals with things immediately and gets back to us there and then……she’s so reliable and  always cheery on the phone too ! …it’s a pleasure to work with her ..” client

“….I never ever have to worry about getting paid the right money as Kirstie and her team are always so thorough and consistent and make sure that it happens …she does a great job sorting out our wages I always get paid what I’m due and on time…so thank you for all your hard work....” contractor

So,what are the new HMRC tax changes from 6 April 2014 ?

 Kirstie: ” …the reason things have changed is that HMRC believe that there are 250,000 workers in the UK who are falsely self-employed and should really be employees. Until now it has been very difficult for HMRC to challenge these workers, but now HMRC has changed the legislation to make it easier  to do so.  Drivers and Construction workers are ‘Low Hanging Fruit’ and will be targeted as priority by HMRC”. 

The REC has summarised this as as follows;

– From 6 April 2014, any temporary worker working through an employment intermediary (defined as any company sitting between client and worker, including employment businesses or limited companies) will be deemed employed for tax and NICs purposes, unless that intermediary can demonstrate that the individual is not subject to (or to the right of) direction, supervision or control  (Source: https://www.rec-irp.uk.com/__data/assets/file/0003/141096/IRP-tax-legislation-briefing-note-6-April-2014.pdf)

Kirstie goes on to explain:

 “In a nutshell, unless it can be proven to HMRC that the end user client (temporary worker/contractor) does not have the right of supervision, direction or control over the worker, then your employment agency must treat all the income as employment income and tax it accordingly”.

However,  have a compliant solution for temporary workers/contractors which maintains the benefits you are currently used to !

Here Kirstie runs  through the new ways of working with  Ltd to ensure temporary workers/contractors comply with the new HMRC tax rules:

” will take care of everything  and we can in fact offer you more benefits with no hassle.  We are working with our providers to set up individual limited companies for each of our subcontractor clients in order that you can continue to enjoy the advantages of working with  Ltd and continue to receive the benefits associated with self- employed  status

– No Changes, No Hassle, No Decrease In Take-Home Pay

– You’ll still claim your allowable work-related weekly expenses and be paid weekly

– There’s more good news too because our providers are reducing their charges and so you’ll receive the same, if not slightly more take-home pay. As you’d expect, they’ll handle your annual tax and company returns, self-assessment, VAT and all the other things you require”

Kirstie stresses the importance of acting now:

“If  you haven’t already done so, it is crucial that you act now to avoid paying further additional tax.  Taking no action could mean a reduction in your take-home pay which could be avoided with immediate effect !  If you are a temporary self-employed worker/sole trader get in touch and see how can help you and whether you are HMRC tax compliant. Just give me a call on 01236 702007  or e-mail kirstie@tenlivegroup.com !”. 

Kirstie McPherson

Payroll Supervisor 

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