Tribunal Ruling Vindicates 24-7 Staffing Decision to go 100% PAYE
A significant tribunal ruling was made last week, which will have implications across the recruitment sector and confirms that 24-7 Staffing's decision to pay the candidates they place as employees via PAYE (Pay as You Earn) was the right thing to do.
The ruling by the First Tier Tribunal (FTT) said former BBC Look North presenter Christina Ackroyd was affected by IR35 tax legislation; IR35 is designed to combat tax avoidance by workers supplying their services via an intermediary, such as a limited company, but who would be an employee if the intermediary was not used. Such workers are called 'disguised employees' by Her Majesty's Revenue and Customs (HMRC).
At last, it seems HMRC is starting to catch up with limited company contractors who have been avoiding tax and this case may well be the first of many.
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Julian Thompson, Managing Director