Two in five contractors have been penalised by HMRC

Just under two-fifths (37%) of UK contractors have received a fine or a penalty from HMRC, according to a study from payroll umbrella company Paraplus.
Mon, 10 Jun 2013Just under two-fifths (37%) of UK contractors have received a fine or a penalty from HMRC, according to a study from payroll umbrella company Paraplus.

Paraplus, the sister company of temporary agency labour procurer de Poel, surveyed 2,000 contractors, asking whether they had received such a sanction at any point in their working life.

This could equate to nearly 600,000 people nationally, with the country’s contractor workforce estimated at 1.6m people nationally, according to freelancer trade body PCG.

It also shows 54% of contractors are unsure what they can and can’t claim as an expense, while 42% say understanding and adhering to HMRC guidelines is their biggest concern about working for themselves.

Paraplus managing director Phil McDonald warns: “HMRC doesn’t consider ignorance to be an excuse, so those workers who have already been fined, or might be, are at risk.”

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