Any experts regarding contractors?

Lifeisbutadream

I am just filling in the questions on HMRC site. Now maybe I am just being thick, but does this question make sense..


'Can the worker be told what work to do whether or not the worker is expected to know?'

Lifeisbutadream

Rolo_Tomasi wrote: »

The first reply gave the best advice. The online tool is called the employment status indicator - see here and this is used by Revenue personnel who would investigate your company

I have used the link and the worker is self-employed.

Phew - one less thing to worry about for now

DCodd

Lifeisbutadream wrote: »

I have used the link and the worker is self-employed.

Phew - one less thing to worry about for now

You may want review the way he gets paid though. If he gets a % of profits then technically he is not working as a sub-contractor as there is no price quoted subcontract in place but is being paid a profit related dividend from your company. He should submit a fixed price for the works whether it be profitable of not i.e. price work.

Lifeisbutadream

DCodd wrote: »

You may want review the way he gets paid though. If he gets a % of profits then technically he is not working as a sub-contractor as there is no price quoted subcontract in place but is being paid a profit related dividend from your company. He should submit a fixed price for the works whether it be profitable of not i.e. price work.

Yest - that is a wierd one - he wanted to be a partner in the business, but he is crap with money so we didnt want him to, which was why we agreed on this method as it suits us both - he doesnt get paid at all if we dont get paid (which hasnt happened yet), but we may have to re-think how we do it.

All the rest of the contractors are fine as they just submit a quote for their work beforehand.

Rolo_Tomasi

Lifeisbutadream wrote: »

I have used the link and the worker is self-employed.

Phew - one less thing to worry about for now

Good. Did you print out the response? You need to keep a copy of it so that you can prove to the Revenue that you have considered employment status, used their own system and the result was self employed. You will need to do this for each self employed contractor and consider status again if anything ever changes.

Lifeisbutadream

Rolo_Tomasi wrote: »

Good. Did you print out the response? You need to keep a copy of it so that you can prove to the Revenue that you have considered employment status, used their own system and the result was self employed. You will need to do this for each self employed contractor and consider status again if anything ever changes.

Never thought of that - will do that now... thanks