Anyone know if this is legal in the UK? Hypothetical, of course… 😉
Scenario:[/u]
A UK PLC, which operates around Europe. A lot of staff are now employed as contractors through an Irish agency, working out of the UK. Said staff are self-employed through an Irish umbrella company, paying Irish NI and tax.
UK tax return declares no tax owed in UK under dual tax agreement. Obviously, no IR35 to deal with in this situation. Contract runs for 2-3 years.
Staff receive no paid holiday (unpaid leave randomly assigned two weeks in advance) or sick pay, but are expected to wear company uniform, have company ID cards, and company email addresses; and receive a few benefits allowed to permanent employees.
Seems to be a very grey area about judging whether self-employed or not – no guidance on the direct.gov website covering this particular situation.
What’s your take on it? Worth stashing away a bit of extra cash in case the Inland Revenue takes a dim view on this? Should say that in this particular scenario there might be as many as a thousand people involved.