Client: Electrical contractor in Hertfordshire

HMRC visit: Worker status inspection

Background

HMRC carried out a compliance visit to an electrical contractor with a number of CIS self-employed operatives that were engaged directly. Following the review, HMRC advised that the working arrangements in place were indicative of an ‘employer–employee’ relationship.

This meant the contractor faced a significant risk of financial penalties, additional tax liabilities, and employment-status challenges. HMRC instructed the business to reassess how its operatives were engaged and scheduled a follow-up visit three months later to review the corrective actions taken.

Actions Taken

The contractor had very limited understanding of employment law and struggled to see how they could manage this risk internally themselves. Given the nature of the industry and the stop-start nature of projects, employing all of the subcontractors made no sense commercially and most subcontractors still wanted to retain the freedom of being self-employed.

Instead, the company reached out to Marquee to remove this headache from the business. By applying our knowledge and understanding of engaging subcontractors in the construction industry, this allowed the electrical company to focus on the operations of their business whilst knowing the supply chain risk was mitigated by Marquee.

Outcome

Upon HMRC’s follow up visit, the electrical contractor was deemed to be compliant. There was no longer an employment status risk posed to the business as all engagements adhered to HMRC guidelines.

Facing a HMRC worker status inspection? Don’t wait. Early advice can prevent penalties and costly follow-ups. Contact us now: https://www.marquee-group.co.uk/contact