Getting employment status wrong is one of the most expensive tax mistakes a business can make. Whether someone is genuinely self-employed or an employee is not a matter of choice and is often far more complex than it first appears.
The decision depends on a range of legal and practical factors such as control, substitution, mutuality of obligations, financial risk, provision of equipment, basis of payment, intention of the parties and length of engagement. These are matters of employment law supported by extensive case law, and HMRC does not have the final say.
If status is decided incorrectly, the costs can be enormous. In addition to back taxes, interest and penalties, employee status can give rise to employment rights such as holiday pay, maternity pay and unfair dismissal claims. The liability usually rests with the employer, and recovery from the worker is often impossible.
Butterworths Accountants can review your existing arrangements and give you a professional opinion on whether they would stand up to challenge from HMRC. We also advise on contracts for services and practical steps you can take to maximise your chances of achieving the correct employment status.
Contractors and IR35
Many contractors are concerned about IR35, yet HMRC loses a high proportion of IR35 disputes. Whether IR35 applies depends on a range of legal and practical factors, and HMRC does not have the final say. Each case turns on its own facts and relevant case law.
Butterworths Accountants offer a free initial consultation to discuss the tax advantages of contracting and the different possible scenarios. We provide an all-inclusive service for contractors, covering company formation, annual accounts, company and personal tax returns, bookkeeping, VAT and PAYE returns, company secretarial services, tax computations and full IR35 support.
We review contracts for IR35 status, draft anti-IR35 contracts, and deal with IR35 disputes where they arise. We can also review your existing arrangements and give you a professional opinion on whether they would stand up to challenge from HMRC, and advise on how to maximise your chances of remaining outside IR35.
Getting IR35 wrong can be extremely costly, with significant liabilities for income tax, employees’ and employers’ National Insurance, plus interest and penalties. Our role is to help protect you from these risks.
Employee Remuneration Planning
Good remuneration packages are essential for attracting and retaining high-quality staff. With the right planning, a significant proportion of employee remuneration can be structured in a tax-efficient way.
Butterworths Accountants provide comprehensive advice on employment tax matters, including tax-efficient remuneration strategies, benefits planning, company car and van strategies, expenses dispensations, termination and inducement payments, and retirement planning. Our aim is to help you reward your staff effectively while keeping employment taxes to a minimum.
Personal tax planning
[insert firm name] can help with the complex issue of personal tax, we know it can be difficult to understand, which is why we help every step of the way. We take away the time and stress by creating a tax planning strategy that suits your tax affairs, helping ensure you pay the least amount of tax. Our team will advise when payments are due along with what forms need to be filed and returned to keep you compliant.
Capital gains tax
You may be looking at investments, a second property or another asset and our team can make sure you maximise your exemptions while simplifying the difficult area of capital gains tax.
Self assesment
Our tax services make sure that your tax liability is calculated taking into account all allowed exemptions and deductions. We simplify the process by using accountancy software to accurately complete tax returns and calculate any tax liability that may occur, along with any payments that need to be made.
Corporation tax
Corporation tax reliefs and rates change annually, so we ensure that we can provide all the right guidance and advice when looking at exemptions, allowances and deductions that may be available. We will thoroughly review and prepare corporation tax returns in great detail in order to ensure you are compliant and that you don’t incur any penalties.
Our Core Services
