HMRC looks at how you work with sub-contractors, and if:
- You use self-employed tradesmen without a written contract,
- You supply the majority of the materials, plant and equipment,
- You pay them an hourly/daily/weekly rate
- The sub-contractor cannot demonstrate that he can make a loss as well as a profit, or
- the sub-contractor cannot demonstrate that he has an active portfolio of other clients,
then HMRC areextremelylikely to find that these tradespeople are your employees, that the sub-contractors are not genuinely self-employed, and YOU are liable for any unpaid tax and national insurance contributions, plus penalties.
