CIS contractor query

dantray

Afternoon all.

Ltd co client has a number of CIS subcontractors and around 7 or 8 of these tick most of the 'employee' boxes and I believe should be on payroll. I have notified my client of this, who in turn spoke with each and asked them to be employees.

Client has advised that all have said they are not willing to be on the payroll and wish to remain as they are (of course they do).

Apart from making my opinion on this matter clear, should I advise my client to insist his subcontractors either become employees, removing the risk completely, or incorporate, thus pushing the risks onto themselves?

Any advice appreciated.

Thanks,
Dan.

Nie

I'd question whether your client has really offered to make them employees. (Why would these workers not want 28 days paid holiday a year, a bit of job security, paternity pay, SSP, the ability to access contribution-based JSA, etc. ?)

I know quite a few guys who are falsely categorised by their employers as "self-employed" under CIS and they are definitely not happy about it. (But they would prefer not to be blacklisted by the entire industry by making an issue of it)

Carole

You could warn your client that if HMRC become aware of this and he could end up paying all the subcontractors tax and NI that should have been paid if they were employed. This can be backdated so could add up to a tidy sum.

It is the contractors responsibility to assess the possible employment status of each and every subcontractor.

Its a tricky one because obviously contractors don't want the hassle and expense of employees but ultimately it is their responsibility and their risk if they don't follow the rules.

T.C.

I would warn the contractor in writing to cover yourself. Perhaps you should also consider whether you want to work for them??