How Hudson Contract is meeting the challenges of new tax rules designed to make it harder to be a labour-only subbie
New Government regulations designed to ensure that 200,000 fewer labour-only subbies can work as self-employed because of restrictions on the means by which their employment status is judged are now up and running – with further changes due to kick-in next April.
And Hudson Contract’s response?
Chairman David Jackson says: “We have spent a great deal of time and money investing in professional expertise to ensure we – and our clients – continue to meet HMRC’s requirements.”
In fact, Hudson Contract had been working with one of the ‘Big Four’ tax and audit firms long before our collective analysis was applied to the Onshore Employment Intermediary tax regulations. As a result, our methods and processes have been reinforced, and the Hudson Contract business model strengthened.
We have taken on additional staff to apply our wider business method to make sure we continue to fully comply with all the many and various tax laws we are obliged to meet:
As you probably know, we have also changed the way our clients have to operate. Between April and September, there have been changes in our client base whilst we have ensured everyone is compliant with our upgraded methodology. One outcome is that we have seen an increase in both the number of transacting clients and the number of operatives paid.
This is reflected in our latest filed accounts, which became visible in September. They confirm a 38% increase in turnover and a 110% increase in retained capital and plus a sum reserved to meet any challenges to the Hudson Contract business model and our guarantees.
David Jackson adds: “As market leader, we have taken the steps you would expect of us to ensure the surety, longevity and certainty that is synonymous with Hudson Contract. With this extra care and attention to detail now in place, we are resolute in upholding the quality of the Hudson Contract service and we remain fully committed to maintaining the integrity of our clients’ instructions.”