There was a fairly seismic change in the tax rules for employing contractors at the start of this month and its already causing headaches.
Under the new IR35 arrangements, if you hire self-employed people and are a medium or large-sized enterprise, its now your duty to make sure you do so on the correct tax basis.
The change means that anyone you take on consistently should be employed on a PAYE basis rather than being left to look after their own tax affairs.
If youre self-employed and particularly if you work through a limited company or Personal Services Company you wont need us to tell you that IR35 came into force at the start of this month.
The new arrangements are meant to crack down on contractors and employers exploiting a loophole in the tax rules which make it more efficient to hire a contractor through a limited company.
HMRC thought this was being abused, and contractors who were essentially employees were dodging significant tax liabilities.