What happens if I get caught

WHAT IF I GET CAUGHT DOING SOMETHING WRONG OR SOMETHING I DIDN'T KNOW WAS WRONG?

The HMRC are determined to drive out false self-employment and some would argue self-employment altogether. As far as the HMRC is concerned the system has been abused for many years.

For now at least, they say they have no issue with as they see it genuine, self-employment i.e. Bidding for work, buying plant and materials, working on a price with all the risks, consequences and penalties if something goes wrong and the flexibility to do the work when and how the individual self-employed worker sees fit.

But over time the industry has developed a new class of self-employment, where the workers who are working under CIS are paid hourly, bear none of the financial risks if things go wrong, provide their services as labour only and crucially for the most part are under the direction and control of the person or company that pays them, working as directed.

This is what the HMRC is vigorously classifying as false self-employment and are determined to rout out.

If you are reading this then chances are you are worried about something, maybe you are in doubt about the employment status of your workforce. Maybe you use a payroll company, maybe you pay workers cash, maybe you use a labour agency and maybe you have introduced contracts that you now have no confidence in, or maybe you have just taken some bad advice. If any of these apply to you please give us a call on 0208 901 2914 and book your FREE no obligation initial consultation, if nothing else you will know where you stand and what you can do about it. Maybe you have nothing to worry about, if that is the case we can let you know that too.

At this meeting we will provide you with all the answers to your questions on this subject.

Questions such as:

How will the new rules and regulations affect my workers?
What can I do?
How does your insurance work and how will it protect me?

If you get a visit from HMRC inspectorate and they deem all or part of your workforce should be classed as employed rather than self-employed then the following actions, options are available to the HMRC

Payment of all outstanding PAYE owed as calculated by HMRC, going back as many years as they wish
Discretionary penalties and fines for breaching the rules. You are at their mercy

One other thing to consider is that the HMRC will force you to adopt PAYE status going forward for all your workers that are deemed to be employed as far as the HMRC see it. This means your labour costs increase PERMANENTLY from that point on.

It goes without saying that getting caught flouting the rules is going to be very expensive, disruptive to your business and potentially ruinous.