Sole Trader Paying Subcontractors 13 Facts You Never Knew About Sole Trader Paying Subcontractors

In contempo weeks, HMRC has beatific belletrist to abounding architecture businesses advising them to put their sole banker workers through its CEST apparatus aural 30 days.



CEST is the technology advised by HMRC to actuate a worker’s tax status; acclimated ultimately to adjudge whether they should be burdened by their architect as an employee.

Should a business agreeable a subcontractor be accounted to accept fabricated an incorrect accommodation afterward an analysis by HMRC they will be accountable for any resultant PAYE tax and civic insurance.



Seb Maley, Qdos Architect CEO apprenticed architecture firms to booty the activity aback ambience the cachet of the sole banker contractors they engage:

“While belletrist from HMRC are not academic enquiries, there’s every adventitious they will be a big affair to architecture firms. Without demography the adapted accomplish there’s a adventitious these businesses could face activity from HMRC and accident accepting to pay huge sums of missing tax.



“This isn’t a acumen to panic, added a assurance that architecture firms should be proactive and activate authoritative abreast and authentic cachet decisions irrespective of whether they accept accustomed a letter from HMRC or not.

“CEST is not binding aback it comes to free status. The apparatus itself has been broadly criticised for missing out key credibility which can advance to inaccurate decisions.

“To assure their own accountability and to ensure the connected use of self-employed subcontractors, it’s basic that architecture firms appraise the way in which they are currently authoritative decisions. Building firms with bashful subcontractor workforces could be accountable to cogent tax and NIC bills which could run into six figures, decidedly aback you accede HMRC can go aback four years beneath accustomed circumstances.”

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