In The News
Many motor dealers engage the services of valeters, drivers or cleaners on a self-employed basis. You will be used to making an assessment of whether there is any risk that HMRC could take the alternative view that they are actually employees for tax purposes. Up until now, this risk was mitigated if they provided their services through a company. New measures introduced from this month however, may mean that this is no longer the case.
From 6 April 2021, rules have been introduced for individuals who provide their personal services via an ‘intermediary’ to a medium or large business. We will cover the definition of medium/large later, however we would expect most dealers to qualify. An intermediary may be another individual, a partnership, an unincorporated association or a company. The most common structure is a worker providing their services via their own company (PSC) but agency relationships may also be caught. For ease we will use the term PSC to summarise the rules which will apply to all intermediaries.
As the new tax rules apply to amounts paid from 6 April 2021 they may affect current contracts.
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