False self-employment in the Construction Industry
In July 2009, HMRC published a new consultation document "False self-employment in construction: taxation of workers".
If the new legislation is successful, any workers within the construction industry who are operating under the guise of a self-employed person, but are in-fact performing their duties in the same or similar way as an employee of the end client, will need to have their income processed through PAYE. This is what HMRC refer to as “false self-employment” and will potentially bring IR35 to the construction world.
To meet the definition of self-employed, workers must provide:
- Their own plant and equipment (over and above the normal tools of the trade)
- All their own materials
- Other workers to carry out operations under the contract and be responsible for paying them.
The full consultation document can be viewed at http://www.hm-treasury.gov.uk/...false_selfemployment_construction.htm.
If you would like to discuss having your pay processed through PAYE, please do not hesitate to contact a member of our team on 01206 713680 or email us at info@contractorumbrella.com.
HMRC are consulting on when the new rules should be implemented and are welcoming comments on the proposal until 12th October 2009.
About ContractorUmbrella
ContractorUmbrella is one of the largest and most respected Umbrella Companies in the UK. Established in 2002, it is now recognised as being the market leader with several thousand satisfied clients.
ContractorUmbrella has been confirmed as fully compliant and is affiliated to the PCG (Professional Contractors Group – UK’s largest and only trade body for Contractors). ContractorUmbrella is also an approved Umbrella Supermarket supplier and is the only Umbrella Company to have held both APSCo and KPMG compliance accreditations.
ContractorUmbrella’s customer service charter guarantee emails will be answered within 4 hours, if sent during normal office hours and the telephone will be answered, by a real person, within 3 rings. You won’t be subjected to an automated call handling platform (we hate it as much as you do) so you won’t be asked to press one for this, two for that and held waiting on hold for ages.
If you would like to enquire about our services, please do not hesitate to contact a member of our team on 01206 713680 or email us at info@contractorumbrella.com.
For a full review of what to look for, visit our Umbrella Comparison page.
If you are struggling to finalise which company to use, please visit our Choosing an Umbrella Company page. You may also find the following pages and guides useful:
Umbrella Company myths and facts revealed.
FREE downloadable Contractor guide
Contractor Guide to IR35
New and updated Expenses Guide
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