I have a small background in working for a company who knows about things like this but it was a long time ago and I'm wondering if I have the right end of the stick.
A family relation has a small company who takes on people to do work at various locations. The people who do this work are all 'self employed', they all have to complete their own tax return and do not receive holiday or sick pay. So effectively the family member is acting as an 'agency' by finding the people and the work and putting them together.
My understanding is that this falls under the 'gang master' type rules (can't remember any more about it than this though).
Another rule i remember clearly (due to a company falling foul of it and having to close) is that if you pay a self employed person (rather than a limited company), and they don't pay their tax and Ni then you are liable for the tax and Ni.
However would the fact that these people are low earners and unlikely to go over the 10K taxable earnings limit make this less of a concern?
Just wondering if anyone knows anything about this and can help? I'd appreciate it if you could let me know if I'm totally wrong?!
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Do you see any problem with this
4 replies
Diamondsandpurls · 27/07/2016 07:12
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