Re: FN-FORUM: Legal gubbins you need to follos when employing contractors

date posted 23rd November 2007 13:00


On 23 Nov 2007, at 13:29, Alain Williams wrote:

>
> On Fri, Nov 23, 2007 at 01:18:49PM -0000, Tony Crockford wrote:
>> this all sounds a bit odd.
>>
>> imagine a window cleaner that doesn't pay his taxes, is the IR going
>> to try and recover them from each of his clients?
>>
>> or a builder that builds extensions?
>>
>> or an accountant that does your books?
>>
>> I suspect there's some mis-information here, so anyone that has any
>> clarity on this please let me know. As a sole trader, not paying
>> taxes and having my clients get stung for them instead sounds quite
>> interesting..
>
> The difference is that the above have many clients and so are
> obviously
> not your employee. If you provide work that fills most of their
> working
> hours things become a bit grey ... this is what IR35 was all about.
>
> As I said: a letter from their accountant saying that they are
> schedule D
> (ie the tax man knows that they are self employed) should let you
> off the
> hook -- you have shown due diligence.


yes, but there's a world of difference between IR35 and a disguised
employee and the IR reclaiming tax unpaid by a freelancer you
contracted to do work for you.

in all instances the advice is the same:

get a contract between you
ask a solicitor for legal advice
keep proper records
pay your taxes!

;o0