HMRC compliance and status protection
Paying freelancers under CIS can be playing with fire. If you get anything wrong about the employment status of your subbies you could be heading for what’s often described as ‘trouble by tick box’.
Never forget, your monthly CIS300 report gives HMRC all the ammunition they need to identify any weaknesses in your current CIS arrangements. They know exactly who, when, and how much you pay your subbies. So if something doesn’t look quite right to them, you’ve already given them the ammunition they need to put you in their sights. You also need to tick a box every month, declaring you’ve checked the status of everyone on CIS.
So if HMRC decide to launch a status investigation into your subbies and their contracts, what are the chances of them deciding they are not freelancers at all and should be employed? How much will you have to pay in penalties and fines? And do you really believe that whoever drew up the failed contracts – your current payroll company, agency/umbrella provider, or financial adviser – is going to cough up, or will they swiftly pass the buck and remind you the ultimate responsibility is yours alone?
With Hudson Contract, the dreaded tick box disappears and all the financial liability is transferred from you to us. It really is that straightforward.
Understand why Hudson Contract clients have nothing to fear from an HMRC status inspection – watch the video now
Incidentally, because HMRC can go back six years, we’ll safety-check all your records and help you deal with any potential danger. It’s all part of our service. And it doesn’t cost you a penny extra.
Fines and penalties:
Check your potential liability here
Can Hudson Contract prevent HMRC status inspections?
No-one can prevent HMRC from inspecting your records and anyone who claims to be able to block status inspections should be avoided at all costs. What Hudson Contract does is to eliminate the fear of the inspection – we tell you exactly what to expect and how to deal with it – and ensure it has no financial consequences for you or your business.
Can I be certain Hudson Contract clients are bulletproof?
Here’s what HMRC said to one of our clients after a recent inspection:
“A large number of workers are provided through Hudson Contract. The information you have provided confirms the transfer and continuing engagement of these workers is in line with Hudson Contract’s usual practices. There is therefore no employment status for me to consider.”
We have countless examples and client testimonials to prove that with Hudson Contract, you get what you have paid for: a secure self-employment solution that is guaranteed.
Am I liable should HMRC ever rule the arrangement is illegal?
No. We guarantee that if our contract should ever fail an HMRC investigation, you have no financial liability whatsoever. It has never failed, but if it should, we would pay for the legal team to argue the case and pay the fine if we were to lose.
If you currently use another provider or a contract provided by a third party, be sure to ask them this same question, and get them to confirm the answer in writing. No client of Hudson Contract has ever faced a bill from HMRC in relation to a status investigation.
Can you afford the fine if HMRC decides your self-employed operatives are non-compliant?
Run your numbers through our liability calculator and see how big a risk you are taking.
To speak to one of our team, call us on 01262 401040
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