Do you use subcontractors?

If you use subcontractors in your business, you should check that the tax rules do not deem them to be employees of your business. If you pay subcontractors who are really employees you could get caught with a large tax bill if HMRC investigate you.

HMRC has launched an online employment status indicator. You answer the questions and the indicator will advise whether the individual in question should be treated as an employee or not.

As with most things, this is only the Taxman’s interpretation of the rules and is not necessarily correct. If you are in any doubt you should contact your accountant for their view.