The FT reports that GlaxoSmithKline has found itself at the centre of a tax crackdown after HMRC accused nearly 1,500 of its self-employed contractors of being “disguised employees”.
HMRC sent identical letters last week to contractors working in various GSK departments including IT and biomedical sciences.
“We’re writing to you because you told us you were self-employed when you worked for and received payments through, your own company.The letters told the contractors that, if they accepted their GSK contract was caught by “IR35” rules on self-employment, they should calculate their employee payroll tax and national insurance contributions for the 2018/19 tax year and make payments by September 22.
Whether a worker is employed or self-employed for tax purposes is not a matter of choice. Instead, you need to look at the facts of the working relationship between you and GSK.”
If they disputed this, HMRC told them to reply with evidence by September 19.
Seb Maley, chief executive of Qdos, an IR35 tax specialist, said the letters were “aggressive” and that HMRC was trying to “terrify” contractors.
“HMRC is working off the basis that these contractors are guilty until proven innocent.”Rebecca Seeley Harris, head of off-payroll at employment law specialist Re Legal Consulting, said contractors need not be afraid.
“Although it sounds very threatening, the letter has no legal basis.”
Tax does have to be taxing.
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