M
McDonkey
Guest
Hi Folks
There have been a few posts around this topic before, but none I have read provided an answer, just quoted "The Rules". The content is a little cheeky so if I'm out of line, feel free to shoot me down. Just looking for opinions...
I run a training company - I am a director and employee. My courses (1-2 days) are taught by me AND other instructors already in full time employment somewhere else. They do it on their free time. I currently provide equipment. I currently pay accommodation expenses (infrequently needed). Some do one course per year, others do 10-15 courses. The question of employee-contractor status came up when the director of a similar business was told by Revenue to employ ALL contractors as employees, no matter how little work they did for him. This is an enormous pain in terms of admin for him. Deducting PAYE also scares off the instructors who would want to look after their own tax affairs - yes, I realise why!
I read the Revenue guidance linked to in the other threads. I understand the points listed and their significance.
I'm wondering how far those rules can be bent/massaged...
"Has control over what is done, how it is done, when and where it is done and whether he or she does it personally"
"Is free to hire other people, on his or her terms, to do the work which has been agreed to be undertaken"
Could I draw up a contract with each instructor, detailing the yearly number of courses to be done and the contract price. It won't specify which courses he would teach on, just as long as he does the agreed number. The contract would state that he may also subcontract the work to another instructor. Thats what's "on paper". What's understood between me and the instructor is that he will agree the courses he will teach at the start of the year and won't hire anyone else.
"Receives an agreed contract payment(s) without entitlement to pay for overtime, holidays, country money, travel and subsistence or other expense payments"
My instructors already have their sick pay, holidays etc form their full-time job - they have no interest in getting more from me.
"Receives expense payments to cover subsistence and/or travel expenses"
I would have to stop paying expenses (this wouldn't be a problem for the instructors).
"Does not supply materials for the job"
Equipment would still be a problem as I maintain and warehouse all the training equipment between courses.
I am clearly trying to shift the burden for returning tax from me (PAYE) to my contractors (self-assessed). Currently they are paid as contractors, but without any mechanism in place to argue with Revenue about it. I have the feeling some of the instructors DO NOT return tax because they feel they are below the radar, given their full-time job and given the small amount of work they do for me.
I don't want the hassle of registering EVERYONE who does even 1 course for PAYE etc. I also want to keep onboard the skilled instructors who may (or may not) be dodging tax.
Do you think my strategy would hold water if Revenue come knocking?
Does anyone have a better one?
Thanks!
There have been a few posts around this topic before, but none I have read provided an answer, just quoted "The Rules". The content is a little cheeky so if I'm out of line, feel free to shoot me down. Just looking for opinions...
I run a training company - I am a director and employee. My courses (1-2 days) are taught by me AND other instructors already in full time employment somewhere else. They do it on their free time. I currently provide equipment. I currently pay accommodation expenses (infrequently needed). Some do one course per year, others do 10-15 courses. The question of employee-contractor status came up when the director of a similar business was told by Revenue to employ ALL contractors as employees, no matter how little work they did for him. This is an enormous pain in terms of admin for him. Deducting PAYE also scares off the instructors who would want to look after their own tax affairs - yes, I realise why!
I read the Revenue guidance linked to in the other threads. I understand the points listed and their significance.
I'm wondering how far those rules can be bent/massaged...
"Has control over what is done, how it is done, when and where it is done and whether he or she does it personally"
"Is free to hire other people, on his or her terms, to do the work which has been agreed to be undertaken"
Could I draw up a contract with each instructor, detailing the yearly number of courses to be done and the contract price. It won't specify which courses he would teach on, just as long as he does the agreed number. The contract would state that he may also subcontract the work to another instructor. Thats what's "on paper". What's understood between me and the instructor is that he will agree the courses he will teach at the start of the year and won't hire anyone else.
"Receives an agreed contract payment(s) without entitlement to pay for overtime, holidays, country money, travel and subsistence or other expense payments"
My instructors already have their sick pay, holidays etc form their full-time job - they have no interest in getting more from me.
"Receives expense payments to cover subsistence and/or travel expenses"
I would have to stop paying expenses (this wouldn't be a problem for the instructors).
"Does not supply materials for the job"
Equipment would still be a problem as I maintain and warehouse all the training equipment between courses.
I am clearly trying to shift the burden for returning tax from me (PAYE) to my contractors (self-assessed). Currently they are paid as contractors, but without any mechanism in place to argue with Revenue about it. I have the feeling some of the instructors DO NOT return tax because they feel they are below the radar, given their full-time job and given the small amount of work they do for me.
I don't want the hassle of registering EVERYONE who does even 1 course for PAYE etc. I also want to keep onboard the skilled instructors who may (or may not) be dodging tax.
Do you think my strategy would hold water if Revenue come knocking?
Does anyone have a better one?
Thanks!