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EIGHTY PERCENT CONFIRMED
AS GUIDELINE
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The Inland Revenue has confirmed that it is using a guideline of 80% total turnover with one client as its main trigger for determining whether the status of a self-employed coach may be worth investigating.
This means that if one client makes up 80% or more of your total income, you are more likely to be investigated by the Inland Revenue, and part of that investigation will be an assessment as to whether your relationship with that client is truly self-employment.
In this instance, it is more important than ever to ensure that you have put in place all the measures necessary to ensure you pass any assessment of your status.
There are a number of web sites that can help you determine whether you may be at risk of having your status reassessed as a result of an investigation. Two of the best are provided by the Inland Revenue and TaxAid.
Click HERE for the Inland Revenue guidelines
Click HERE for the TaxAid web site advice
Further information is available from Mike on 01902 758500. Please note that you should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, professional advice for your own particular situation. You can also contact the BTCA advice line on 07977 934708 for expert advice from Neil Bradburn.