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Help! From perm to contractor - what are the tax issues?

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    #11
    Yeah, but the HR dept probably sent in a P38 for 'employees' which they haven't deducted PAYE etc for. HMRC probably contacted them back and said that they need to deduct PAYE because they have paid out more than a trivial amount. I'm speculating here, but it looks realistic to me.

    A firm I used to work for had to work to a limit of about £750, beyond which they would have to put the casual on the payroll. The limits are now much lower (about £100 I think).

    HR probably have them down as a temp on the payroll rather than a supplier. I've had these problems myself and I had to send a missive to the client HR team to tell them that I am a supplier and not a temp. It's sometimes difficult for them to tell the difference, especially if as well as permies and casual, they also have part-timers and people (full or part time) on time-limited employment contracts and flexible working and job share and so on and so on and so on and then the firm starts to use consultants and contractors and....
    It's my opinion and I'm entitled to it. www.areyoupopular.mobi

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