Special
NI treatment for certain workers
Many
employers and affected individuals remain unaware of the Social
Security (Categorisation of Earners) Regulations 1978. These
overturn the common law employment status of certain workers
with the result that the employed/self-employed status may
be different for tax and NI.
Of particular concern - and great cost if the wrong treatment
is adopted - is the group of people that the Regulations specify
must be treated as employees for NI purposes. These are:
- office
cleaners
- telephone
box/apparatus cleaners
- most
agency workers
- employment
of a person by their spouse or civil partner
- most
lecturers, teachers and instructors
- most
ministers of religion
- many
actors, musicians and other performers.
As
is clear from this list, the Regulations do not affect every
business but for those it does affect the costs can be significant.
HMRC have also been known to try to attack the most unlikely
activities; for example, stretching the category of teachers
and instructors to approach driving instructors, first aid
trainers and those running summer playgroups. We believe that
many of these approaches are incorrect.
We are also expecting renewed activity in the leisure and
entertainment fields in the near future.
If your business engages people carrying out any of the activities
mentioned above you need to be aware that the special rules
exist. If you are not already applying them, you would be
well advised to seek guidance as to whether your own circumstances
require their application. Otherwise a visit from the taxman
might come as a costly shock!
|
C o m p l e t e
Regulated
to carry on audit work for a range of investment business
activities by the Institute of Chartered Accountants in England
and Wales