We are a small company who have 3 self-employed people working for us. They have been with us for between 6 months to 2 years, but I am worried that they should be employee’s and that HMRC are going to fine me. What should I do?
The status of a ‘worker’ is very much based on the individual facts. Employers in general like to use self-employed workers as they don’t have to pay National Insurance (NI) or holiday pay. However, if HMRC decide that one of your workers should be classed as an employee, they are entitled to charge you the Income Tax and NI contributions they would have received if that person had been an employee instead (although they may offset the Income Tax against what the individual has paid). It is up to the employer to decide the status of their worker, however to help you decide you can either contact HMRC directly and ask for an opinion or alternatively HMRC have a ‘Status Indicator Tool’ on their website which allows you to follow a decision tree with the facts of each worker – http://www.hmrc.gov.uk/calcs/esi.htm
We have not yet received our tax credits renewal pack yet and we are worried that our payments will stop at the end of the month. What should we do?
You have to inform HM Revenue & Customs about your income no later than the 31 July 2012. If you have not received a renewal pack perhaps you have just received an Annual review notice which automatically renews your claim? If you have only received a review notice, please check it to see that information held within it is correct. If your circumstances have changed since last year e.g. a new baby or change of jobs then you should contact the Tax Credits Helpline on 0345 300 3900
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