Bonafide Subcontractors or Employees

[lerp]

I am working with one groundsman two too three days per week and a climber one too two days per week. They are both self-employed but i am unsure if they are in reality bonafide subcontractors. They both do their own work outside of my business. They provide their own saws and fuel, kit etc. They both invoice me for work done each week. They have signed a document to say that they will be responsible for their own tax and national insurance. But i do guide them when on jobs as to what to do.

Do small businesses get prosecuted for not having the correct employment status for workers? Is this something i should be concerned about? If they dont pay their tax am i liable? 

I do not have any contracts and do residental work. Would i be better using a zero hours contract or a Contact for Services? Or leave well alone?!

I would welcome advice.

Thanks

[AA Teccie (Paul)]

When working 'for you' they sound more akin to 'Labour-only' subcontractors...but others may think differently as it's often something of a grey area between Labour only and bona fide but presume you invoice the job so swaying towards labour only.

Paul

[Rough Hewn]

Anyone working with you regularly,
SE or not will be classified as an employee.
It’s about average hours over 3 months or something...
Also whether they work for others etc.
It’s a minefield.
Which nearly everyone in arb/construction etc ignores.
??‍♂️

[eggsarascal]

Just get on getting on, or ask your accountant or solicitor, or send Les a pm. I'd just carry on personally.

[treevolution]

Sounds like you are doing everything right, as long as they don't work the same set days a week and travel to site in their own transport they can be classed as freelance workers. 

[lerp]

Thanks  for advice everyone. Much appreciated. I know it is a grey area so will keep going and do my best!

[Dan Maynard]

Check employment status for tax - GOV.UK

WWW.GOV.UK

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Use this service to find out if you, or a worker on a specific engagement, should be classed as employed or self-employed for tax purposes.

[Dan Maynard]

Get them to answer all the questions in here and printout the answer sheet. I do a regular two days a week labour only (for Wolfie on here) using my own tools and climbing kit and by this calculator I'm right to stay self employed. I suspect you are fine by the same logic.

As above they are not what is known as bonafide subcontractors, I don't think this is grey. If you were giving the whole job over to them to complete then you would have subcontracted it. These chaps are helping you on your job so they are labour only.