Intermediary/Section 44 Audit

The legislation that affects industries that use self-employed subcontractors is the newest, least understood, and least tested legislation.

The problem with Section 44 is that a lot of companies don’t realise they need to consider it, or that it applies to their engagements.

Many companies operate on the assumption that they are the client, engaging self-employed subcontractors. However, when these companies then provide this labour to another company, very specific rules apply. These rules will also have very costly consequences if they are not operated correctly.

We can help you advise your clients on whether these rules apply. If they do, we will advise on what they need to do in order to be compliant and avoid a hefty tax bill. If the intention is to operate as a genuine business providing a service and not an intermediary providing labour to clients, we can help make sure the realities of the engagement and all documentation supports this.