A Question of Status

Are you genuinely self employed (?) is a question many are being asked by the Inland Revenue in its latest drive to increase the number of people paying income tax through the PAYE system and making National Insurance ("NI") Contributions. The drive is seen as a wider attack by the government on owner managed businesses, such as husband and wife companies, composite companies, and personal service companies which are criticised for the lack of contribution they make to the economy. In addition, the Revenue recently announced a major investigation into approximately ten percent of its database of construction companies regarding their categorisation of sub-contractors under its Construction Industry Scheme. The Revenue believes that many sub contractors classed as self employed are in fact employees to whom PAYE and NIC apply.