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SJD Accountancy > News and Opinion > Uncategorized > Chancellor told that ‘SDC’ examples for contractors are useless

SJD Accountancy > News and Opinion > Uncategorized > Chancellor told that ‘SDC’ examples for contractors are useless

Chancellor told that ‘SDC’ examples for contractors are useless

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Written by:Digital
Uncategorized
2 minutes
Published: January 9, 2019 Updated: June 28, 2019
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An industry body, All Umbrella Companies Are Equal, has told the Chancellor George Osborne that the HMRC guidance on the controversial matter of ‘Supervision, Direction and Control’ is ‘absurd and unfair’ when it comes to being applied to the contractors’ expenses claims. In an attempt to reach out to the Chancellor ahead of his 2015 Autumn Statement, AUCAE have followed the HM Revenue and Customs guidance to its logical conclusion, demonstrating that the examples used provide little to no benefit to anyone who is attempting to ascertain their status.

With the new regulations set to take hold in April 2016, there are serious concerns that the lack of case law which supports the use of SDC as a determining factor in a case to ascertain someone’s status. The AUCAE are also keen to point out that HMRC is using the control test alone when judging people’s status, despite the fact that, on its own, control is not considered a determinative factor. With a number of factors which should be considered, using control alone flies in the face of the judicial authority which has established that it should be only one of a number of factors that are considered when considering a contractor’s status.

With no legal definitions to rely on for clarity, AUCAE have analysed HMRC’s guidance in an attempt to drill down to the heart of their own definitions, but it’s proving more difficult than many might imagine to get a clear picture of where SDC begins and ends. Because it is only to be expected that a client will exercise some level of supervision, direction and control over a contractor who is engaged on a project, so being able to give a clear definition of when that tips over into employment as opposed to legitimate contracting.

If you want to know more about life as a contractor, or understand the advantages and disadvantages of operating as a limited company  then our handy guides are ideal for getting to grips with the basics of working for yourself. We even have a FREE 60 page guide to running your own limited company which contains everything you need to help you understand the options available to you.

If you want to take the stress and hassle out of dealing with your finances, have an expert on hand to speak to HMRC on your behalf and get advice from a specialist on the best way to plan your finances, then our friendly team of accountants are always just a phone call or email away. Give us a call today on 01442 275789 or email newbusiness@sjdaccountancy.com.

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