Sole Trader Solution

Sole Trader Classification

Our new Sole Trader Solution allows businesses to engage sole traders without the need for a limited company or an umbrella company.

The solution is designed to assist intermediaries and end user organisations properly classify independent workers for employment status and tax compliance.

As companies look to engage independent contractors and sole traders CXC Comply assists with the complex classification issues and risks associated with misclassification.

Risks

Are you engaging sole traders?

Across jurisdictions, especially the U.K. there are many risks associated with engaging a sole trader.

Risks of Engaging Sole Traders

CXC Comply

Our state of the art compliance and vetting system, CXC Comply, supports IR35 Status determinations and sole trader determinations in the UK.

The sole trader segment in the UK is a large market (3.2million sole proprietorships) but one largely avoided by the Outsource and MSP community due to limited understanding of classification rules and actual/perceived risk due to potential tax chain liability.

CXC Comply will assist with determining the correct status of individual sole traders for the purpose of ensuring compliance with the agency worker tax rules and any corresponding social security contributions regulations).

CXC Comply is designed to assist organisation’s and Outsource Partners to determine the correct status of UK Sole Traders.

Contact Us to Book A Demo

Our Latest Blogs

19 May: UK Business Legal Structure: Sole Trader and Limited Company

In 2017, BBC presenter Christa Ackroyd made headlines when she lost an appeal with HMRC and had to fork out a huge £419,151 in uncollected Income Tax.
The reason? Christa was not an employee of the BBC, but a freelancer working through a limited liability company (LLC). Changes to the IR35 legislation, which governs how ‘off-payroll’ workers are taxed, meant that she was found to be a ‘deemed employee’ — and thus liable for taxes and National Insurance Contributions (NICs) at the same rate as an employee. Since she wasn’t aware of this, she was left with a bill for seven years’ worth of unpaid taxes. Read more to find out about IR35 and it’s effect on businesses across the UK.

19 May: What Is IR35?

In 2017, BBC presenter Christa Ackroyd made headlines when she lost an appeal with HMRC and had to fork out a huge £419,151 in uncollected Income Tax.
The reason? Christa was not an employee of the BBC, but a freelancer working through a limited liability company (LLC). Changes to the IR35 legislation, which governs how ‘off-payroll’ workers are taxed, meant that she was found to be a ‘deemed employee’ — and thus liable for taxes and National Insurance Contributions (NICs) at the same rate as an employee. Since she wasn’t aware of this, she was left with a bill for seven years’ worth of unpaid taxes. Read more to find out about IR35 and it’s effect on businesses across the UK.

13 May: IR35 for Dummies: A Guide for Companies

Becoming a contractor in the UK has its pros and cons. The flexibility and privilege of being in charge of…

False Self Employment -You may be liable for tax, national insurance and other contributions, as well as the trader themselves.

Right To Work -There is an obligation to check and prove that someone has the right to work in the UK. This includes holding a verified copy of their proof of identification and their address.

Tax Liability -You could be liable for the unpaid tax liabilities of contractors who have ceased trading.

Insurance -It is a legal requirement to have insurance that covers external workers that you do not directly employ.