The Christmas shutdown is always the perfect time,(now even more so given the content of the recent budget and the rise of Employer’s NI) to implement change in the engagement terms between yourselves and your workers. If you are thinking of replacing some of your employees with self-employed sub-contractors, or of outsourcing sub-contractors that you already engage directly the 2 – 4 week pause in payments and the termination of the existing arrangements remove any questions of credibility from a compliance perspective. It gives a strong indication that the transition was deliberate and intentional, minimising the risk of any disputes regarding the employment status change. The break can be used to finalise new contracts, communicate terms clearly, and ensure the arrangement complies tax and employment law.
Key considerations during such transition:
- Contracts: Ensure new self-employment contracts are detailed and clearly define the relationship
- Compliance: Understand HMRCs position on Employment Status Reviews and IR35 legislation (if it applies)
- Employees: Will need to provide written resignation from their position of employment
EEBS can help you with all of the above, and ensure all compliance and legislation is adhered to, protecting you and your business from HMRC Status Reviews, IR35 legislation and Employment Rights claims.
