Employed or Self-Employed

We use a tailored question system to determine the presence of Supervision, Direction or Control [SDC] and the materiality of the presence of SDC determines whether you are employed for tax purposes, genuinely self-employed or an employee entitled or otherwise to business related expenses.  Having been in attendance at round table events hosted by HMRC, in direct correspondence with the authors of the relevant legislation, including the Chief Secretary to the Treasury*, and a great many industry specific seminars, we are experts in the legislation surrounding SDC.

Self-Employed CIS

The Construction Industry Scheme [CIS] was introduced in 1999.  Under the Scheme, contractors deduct money from a subcontractor’s payments and pass it to HM Revenue and Customs (HMRC).

The deductions count as advance payments towards the subcontractor’s tax and National Insurance.  Contractors must register for the scheme. Subcontractors don’t have to register, but deductions are taken from their payments at a higher rate if they’re not registered.

You must be a Self-Employed subcontractor and in business on your own account to be engaged under the rules of CIS.

Self-Employed Non-Construction

According to HMRC you are probably self-employed if you:

  • run your business for yourself and take responsibility for its success or failure
  • have several customers at the same time
  • can decide how, where and when you do your work
  • can hire other people at your own expense to help you or to do the work for you
  • provide the main items of equipment to do your work
  • are responsible for finishing any unsatisfactory work in your own time
  • charge an agreed fixed price for your work
  • sell goods or services to make a profit (including through websites or apps)

Self-Employed PAYE

If you are self-employed but subject to Supervision, Direction or Control [SDC] in the manner in which you provide your services via an intermediary then you are deemed to be employed for tax purposes and the engager (in our case Bar 2064 Limited) must subject your fees to the rules of PAYE.