We learned something new this week at Seagrave French and wanted to share it because it took us by surprise.
Everyone knows that auto-enrolment is in full swing for many that a lot of us are staging over the next couple of years.
But what you may not have known as that the description of individuals that have to auto-enrol is actually workers and not employees.
This means that it is possible for a sub-contractor to be caught up in the auto-enrolment system.
The question of whether someone is a worker is not defined the same way as the tax rules and there have been instances in the past where sub-contractors have been awarded employment rights at tribunal.
From now on those employment rights would include contributions to a pension scheme under auto enrolment.
Now the truth is that only 1 in 10 contractors who claim employment rights are actually successful, but we don’t want our clients and friends to be the unlucky 10%.
It’s easy to avoid this problem by having the correct contract in place with your contractors, if you’d like some help with this then please let us know.