Our dedicated Technology team can support your business locally, nationally, and internationally.
HMRC will often become aware of status issues via a PAYE enquiry or visit or through an enquiry into a contractor’s tax return.
13 August 2024
HMRC will often become aware of status issues via a PAYE enquiry or visit or through an enquiry into a contractor’s tax return.
Where a status issue is found, the enquiry into this will be led by the Employment Intermediaries and Status unit.
This unit is now operating on a “sector based approach” with technical leads for each relevant sector (eg Healthcare & Sports). This may give more consistency with how cases in each sector are dealt with going forwards.
Status enquiries are initially handled by way of face-to-face meetings and written communication.
HMRC will approach any status enquiries from the perspective of its own guidance and definition of terms, sometimes irrespective of case law that disputes this.
The taxpayer will then explain the working relationship (contractual and day to day) to HMRC and support their own conclusion using appropriate case law.
Where agreement cannot be reached, Alternative Dispute Resolution (ADR) is available to taxpayers but ultimately it would be up to the Tribunals to decide.
The Employer Solutions team at Bishop Fleming can support you every step of the way through looking at the underlying relationship with you and your contractors through to handling correspondence with HMRC.
If you have any questions regarding any of the above, please contact your normal Bishop Fleming contact or a member of the Employer Solutions team.
We'll send you relevant insight, events and analysis from our technical, sector and service teams - straight to your inbox.
