The risk of getting status wrong
Your total liability is
The above figures do not include any HMRC fines, unpaid interest charges, or any legal costs in respect of challenging HMRC decisions.
Your liability if you use Hudson Contract£0 Book an appointment
Using Hudson to eliminate the risks associated with paying freelance subbies makes our clients some of the most dynamic, forward thinking and efficient businesses in the UK. In 2007 the High Court found Hudson to be compliant in all applications of employment taxes, with HMRC accepting our business model. More than 100 employment tribunals have since reinforced our enviable position. Visit our Evidence page to learn more.
The CIS liability for just two self-employed operatives at an average weekly pay of £900 would be more than £18,000 in one year if they were reclassified as employees by HMRC. For 20 self-employed operatives, that liability would be more than £182,000. These eye-watering figures do not include HMRC fines, unpaid interest charges or any legal costs for challenging HMRC decisions.
Remember the taxman can see exactly who you are paying and their employment status through your monthly CIS300 return. When you are focused on pricing work, delivering projects and getting paid on time, is this a risk worth taking?
For company directors focused on growing their businesses, CIS can be stressful, complicated and time consuming to manage.
Your monthly CIS300 report gives HMRC inspectors 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 employment status of everyone on CIS.
HMRC opens tens of thousands of new tax investigations every month to raise additional funds for the Exchequer. Tax tribunals can drag on for more than a year to return decisions, causing stress and uncertainty for company directors.
By transferring your risks to Hudson, the industry’s most trusted provider of CIS payroll and compliance services, you can get on with growing your business.
Our clients have nothing to fear from HMRC inspections and can make use of our free mock inspection and health check services at any time.
High-profile court cases involving Uber and Pimlico have encouraged some freelancers to try their luck with employment claims against their clients and customers.
The number of tribunals steadily increased after the government scrapped fees for bringing claims. This had the effect of opening the floodgates with unscrupulous advisors looking to cash in. Our analysis shows average time for a tribunal increased from 30 weeks at the end of 2018 to 48 weeks at the end of 2020. The average cost of defending a tribunal claim is £8,500 but the cost of the stress and hassle cannot be quantified and the cost of losing will be even greater!
These facts and figures show the very real financial risks facing firms when engaging freelance subbies and the time it takes to resolve outstanding cases.
We protect our clients against the financial risks of employment tribunal through our 100 per cent status guarantee. If anyone under our contract brings a claim against you to tribunal, we step in and take over the case and all of its liabilities.
Our most recent landmark legal victory was reported in The Times and we would love to tell you about the many other cases we have won over the years.
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We are proud to provide representation on behalf of our growing collective of 2,600 construction firms. Whether it is a wasteful quango, a conflicted trade federation or a self-interested group of so-called experts who try to talk down our industry, we provide the alternative view.
We produce briefing papers and have been consulted by government departments such as DfE, DWP, the Treasury, and the Department of Business, Energy, and Industrial Strategy on issues affecting the construction industry based on what our clients are telling us, day in, day out.
We believe freelance subbies deserve great respect for the value they add to our industry, a contribution we have highlighted through our support for the Centre for Research on Self-Employment think tank and detailed research led by Professor Andrew Burke. We supply in-depth statistics on labour demand to the Bank of England to help inform policymakers.
To speak to one of our team, call us on 01262 401040
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