By Rehana Hussain of Charles Gregory Solicitors Limited posted in Employment on Monday, May 16, 2016.
The question of whether someone is employed or self-employed is an important one, both in relation to tax and to individual's rights under employment law. For some years there have been concerns about the scale of 'false self-employment' in the Construction sector, individuals engaged on the basis that they are self-employed, but who are working under employment terms. Employers classifying workers this way do so to avoid being charged National Insurance Contributions (NICS) on the wages they pay.
More recently there have been also concerns about intermediary companies exploiting these rules, disguising the nature of the contract for workers they place with employers, and in some cases, sharing most if not all of the financial benefits with the employer, with little benefit for the individual worker. One related issue to employment status for business and individuals in the construction industry is the operation of the 'Construction Industry Tax Deduction Scheme', or CIS for short, whereby contractors make a fixed deduction from payments made to self-employed subcontractors to be set against the subcontractor's liability to tax and NIC. One part of the scheme is that contractors must make a formal declaration that anyone they pay under this scheme is indeed self employment. Click here for more details..
Contact Details:
Charles Gregory Solicitors
2 Hammersmith Broadway
London, Greater London, W6 7AL
Phone no: 2033933219
Mail id: info@charlesgregory.co.uk
Web: http://www.cgslaw.co.uk/
The question of whether someone is employed or self-employed is an important one, both in relation to tax and to individual's rights under employment law. For some years there have been concerns about the scale of 'false self-employment' in the Construction sector, individuals engaged on the basis that they are self-employed, but who are working under employment terms. Employers classifying workers this way do so to avoid being charged National Insurance Contributions (NICS) on the wages they pay.
More recently there have been also concerns about intermediary companies exploiting these rules, disguising the nature of the contract for workers they place with employers, and in some cases, sharing most if not all of the financial benefits with the employer, with little benefit for the individual worker. One related issue to employment status for business and individuals in the construction industry is the operation of the 'Construction Industry Tax Deduction Scheme', or CIS for short, whereby contractors make a fixed deduction from payments made to self-employed subcontractors to be set against the subcontractor's liability to tax and NIC. One part of the scheme is that contractors must make a formal declaration that anyone they pay under this scheme is indeed self employment. Click here for more details..
Contact Details:
Charles Gregory Solicitors
2 Hammersmith Broadway
London, Greater London, W6 7AL
Phone no: 2033933219
Mail id: info@charlesgregory.co.uk
Web: http://www.cgslaw.co.uk/
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