Do I have to pay related taxes or socials if I hire a self-employed person on a hourly basis ? He will not be an employee of mine i.e he will be at home , however I will tell them what to do and I will assign them tasks.
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The simple answer is no you don't pay anything.Originally posted by supergal View Post
The more complex question is "are they really self employed". If there is a status enquiry and the IR contend that they were not in fact self employed the only alternative is that they were your actual employee. As such this can be a huge problem for you. You would have been liable for payroll taxes employment rights etc.
The fact that he happens to work at home is nowhere near enough to ensure they are self employed, though what else they do for other people may be. If it's a one off thing then you are probably reasonably safe.
The fact that the contract they undertake the work on may state "you are self employed" isn't enough.
Detailed guide to determining status: introduction
http://www.hmrc.gov.uk/leaflets/es-fs1.pdf
http://www.hmrc.gov.uk/leaflets/es-fs2.pdf -
Be careful - if they don't pay their tax, then HMRC could come after you for it. That's why agencies insist that we go through a Ltd or umbrella company - just in case they get clobbered with the back tax.Comment
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