Steven Beahan
Joined: 10/16/2024
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Tax and NI costs if found not to be self-employed.
I am starting as a self-employed consultant (sole trader) for technology commercialisation (business development). In a draft contract with a client, the client may "deduct PAYE income tax and NI Contributions from the consultancy fee" if HMRC determine that I am not self-employed but an employee of the client. It's a worst case scenario, but is there any possibility that the income tax and NIC could be higher than my actual fee? For the consultancy project, the sum planned is £5,000 inclusive of VAT. Thanks for any help.