Why Hudson Contract?

For a start, it’s an HMRC requirement, and if you choose a rogue CIS intermediary or umbrella company, expect no sympathy.  The buck stops with you.  So make sure anyone you’re thinking of using can give you a written – detailed – explanation of how their business model works, explain the legal framework or case law they operate under and provide sample contracts.   If they can’t – or won’t – do that, they are definitely not “just like Hudson Contract”.  They’re most probably just a payroll company whose bold claims will melt like snow if you find yourself with tax or employment issues down the line.  Be sure to follow HMRC’s guidelines, which you can find here.  And if someone offers you a cheap deal, remember that what seems too good to be true often turns out to be precisely that. 

HMRC’s official advice leaflet lists most of the must-ask questions.  Pay particular attention to a payroll provider’s company history and financial status, due to the large sums of money you’re going to be trusting them with every week. 

Just to emphasise that you can’t be too careful, when Hudson Contract applied HMRC’s core questions to 22 service providers, we discovered three were insolvent, five had no filed accounts, six were registered offshore, four were replacement businesses, one was not actually registered under CIS and seven had multiple companies, all of which were too small to be required to file full accounts.

Highly unlikely.  Workplace circumstances dictate employment status, and differing circumstances mean a one-size-fits-all contract doesn’t work.  This is why Hudson Contract has developed four safety-first business models, and our first step is always an audit of your current circumstances and working relationships.  It’s key to being certain Hudson Contract is right for you, and if it is, to identifying the contract or combination of contracts that are best suited to your business needs, so be wary of those who tell you something different.

Under the regulations, records must be kept and statutory returns made for those who qualify to be paid on a self-employed basis.  If HMRC challenge the information in these returns, will your payroll provider argue the case for you and pay any fines?  Hudson Contract guarantees to do so.  If any other company says they will do this, we strongly recommend you get it in writing. 

HMRC are so concerned about rogue payroll providers that they’ve set up a Special Investigations Unit to combat fraud and the general non-compliance that results in significant loss of UK tax revenue.  If your provider turns out to be bogus, the employment relationship will be invalid and the bill for the tax that has been evaded will land on your desk.