False self employment - new proposed legislation?

[Dayna]

Does anyone have any information regarding false self employment legislation within the construction industry?

For example, my dad has a sub-contractor who I want to keep self employed, however I am concerned about placing him through a third party contracting or Umbrella company.

Any suggestions would be appreciated :-)

[mudskipper]

This forum is for IT contractors, so it's unlikely that you'll get much advice.

The construction industry is different to IT in that CIS applies.

Someone like CIS Payroll Company - Risk Free Construction | Hudson Contract might be the people to advise.

[FarmerPalmer]

Currently if he is employed as self-employed and paid as such, and then found to not be the case by HMRC, then the liability may fall on the end client, now deemed to be employer.

In our line of work the end client doesn't want to take the chance, and so generally will only use limited or umbrella, where any possible future liability is retained within the limited, or umbrella limited company.

So I think that could be the way to go.

But laws change, and the government and HMRC are constantly considering how they can increase tax revenue.

[Dayna]

Thank you

Thank you for taking the time to reply.

Much appreciated. :-)

[LisaContractorUmbrella]

Since the introduction of the onshore employment intermediaries legislation, construction workers, engaged through an agency, who are under supervision, direction or control of the end client will no longer be subject to CIS rules but must be paid via PAYE i.e. paying Class 1 National Insurance Contributions rather than class 2 and class 4