Archive for April, 2015

New law and hefty fines: why employers need to be concerned about all the interims their chairmen and chief executives hire, aswell as the contractors and temps too


The Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2015 was brought in to clamp down on aggressive tax avoidance. As an employer, your reputation will be irreparably damaged if your Chairman or CEO, or any company representative for that matter, hires companies on a contract when they should be hiring the people as employees.

The Coalition Government brought this law in to clamp down on false self-employment and offshore companies. The Conservative Government has a target of bringing in an extra £5bn of tax and so has renewed the previous director of public prosecutions Keir Starmer’s target of 1165 prosecutions in addition to the 220 company executives that they jailed last year

The bottom line is that HMRC will name and shame your company if your executives are caught hiring companies to perform a function when 80% of their annual income is coming from working with you, in which case they should be your employees and taxed as such.

So what do you need to do to keep your job and your company’s reputation?