Inland Revenue recently reminded their newsletter subscribers of the legal tests required to determine whether someone working for you is an independent contractor.
These tests include:
- The degree of control or independence
- What Inland Revenue calls Integration test
- Fundamental/economic reality test
As you can see these matters are technical. If you have a borderline case as to whether someone working for you should be treated as an employee or an independent contractor, seek our help.
If you get it wrong, the penalties can hurt. Employers can be made to pay the PAYE and the employee can be denied expense deductions, not to mention penalties.