It is estimated that in the UK around 5% of the nation’s work force is made up of temporary contractors, and is becoming a more popular route to take for employers, with ever changing business requirements, for job roles. The government deductions of TAX and National Insurance Contributions on these job roles are dependant on each case, due to this it is no surprise that the end client is opting for the cheapest option. To achieve these low payments it normally involves a reduction on TAX fees. Most contractors who work temporary job roles through a recruitment agent are not normally employed by anyone in particular, however the contractors would normally get paid through a payroll (umbrella) company, operating through a PAYE scheme. Here the required NI and TAX deductions are made, as if the contractor is an employee. Over the last few months, we have seen the HMRC crack down on TAX avoidance bringing to light offshore companies and reassuring the public that these companies and the contractors paid through them will be liable for the underpaid TAX and NI contributions owed. These employment agents who have been operating outside the UK, to avoid paying NICs are estimated to pay an additional £85m per year.
CLICK HERE TO READ THE FULL ARTICLE
Tel: 0800 622 6119 | Email: info@epayme.co.uk | Website: www.epayme.co.uk