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Warning issued over sub-contracting legislation

02 January 2018

Companies employing sub-contractors should ensure they are fully compliant with legislation, a business support firm has warned.

Midlands-based JRD Admin Aid Ltd are launching a new system which is tailor-made for the sector after working closely with companies and their sub-contractors.

JRD’s system includes an online portal for sub-contractors and companies to share information and put compliance procedures in place.  

Rebecca Dean (pictured), JRD managing directors, says:  “It is important to keep up to date with policies like IR35. However it’s very difficult to be an expert in every business area.

“Our services take the stress away and allow business people to run their business as they always would. We build trusted partnerships with our clients so we can support them in our area of expertise.

“Sub-contractors must understand what it means to be self-employed. They must have procedures in place to limit liability and prove that they really are sub-contractors and not employees. HMRC will issue large penalties if it is found that sub-contractors should be employees and should have paid Employers National Insurance.”  

JRD give five tips to help prove that subcontractors are not employees:

  1. Ensure you have a strong Service Agreement Contract.
  2. Sub-contractors can show how they invest into their own businesses, pay for their own training, provide their own equipment, etc.
  3. Demonstrate that subcontractors are treated differently to employees, different pay and benefits will not be enough.
  4. Subcontractors can provide a substitute to work on their behalf.
  5. A sub-contractor should let the client know when they are available to work and should not have to request permission for leave.

JRD Admin Aid’s online portal and a mobile app is designed specifically for businesses and their sub-contractors, allows sub-contractors to share information, such as accounts information, personal details, and sales invoice information, along with their availability and the ability to register a substitute for their business.

One of their clients said: “JRD Admin Aid have supported our business for many years and we would not have achieved the business growth that we have without their professional support. We started with around 40 subcontractors and now work with over 800.”

For more information contact Rebecca for more information on 01922 214242 or rebecca@jrdadminaid.co.uk

*Claim a half price compliance audit by quoting ‘ChamberlinkJRD’

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