HMRC often challenge contractors about the employment status of their subcontractors. A ruling that those individuals are employees can cost a business tens of thousands of pounds.
Gilbert Tax has undertaken a number of challenges to status rulings and has often found the initial findings of the Status Inspector to be incorrect. It seems that the normal practice for HMRC is to rule that an individual is employed unless overwhelming and indisputable evidence is held to the contrary.
Often once the full facts are established it can be demonstrated that the sub contractors are genuinely self employed.
Gilbert Tax can also help you design systems and procedures that will assist your business in developing robust controls and contracts to aid in any status enquiry by the Inland Revenue.
With the advent of the rules relating to subcontractors which come into force in April 2007 it is anticipated that HMRC will put more resources into this type of tax investigation and seek to rule that more genuine self employed subcontractors are employees.
This is a very specialist area with complex legislation and case law and should always be handled by a specialist or an accountant who is conversant with all of the law.
If you have a Status Issue and would like expert Tax advice or details of how we can help please phone 0800 734 3333.
We were contacted by a Scaffolding Contractor after HMRC had issued assessment claiming tax and NIC's totalling over £70,000...read more...
"We understand that people sometimes make mistakes in their dealings with HMRC and that HMRC make mistakes in dealing with taxpayers. Many people do not know how to deal with HMRC or who to turn to for help resolve the tax dispute.
Our firm of tax advisors specialise in resolving people's problems with HMRC. We have extensive expertise in dealing with all forms of tax investigations and tax disputes as well as with taking matters to the Tax Tribunal where agreement cannot be reached.
We deal both directly with the individual who is under enquiry and also work with many firms of accountants supporting them in dealing with HMRC disputes and advising them on how to handle HRMC to get the best result.
The fact is that proper management of HMRC is the best way of reducing the tax, interest and penalty as well as the time taken in resolving any tax dispute.
Our expert team are none judgemental and rigorously defend your position within the scope and parameter of the law. We take control and manage the process to minimise the interruptions that any form of tax investigation causes to an individual's life and business."