Bookkeeping - Club - Latest - Self-Employment - Tax

Are Your Self-Employed Coaches TRULY Self-Employed?

May 2nd, 2017

thumbsupiconThis is the time of year that most clubs start to plan their summer programme of coaching and club activities and it is therefore a perfect time to ensure that any self-employed coaches you use in delivering your programme are truly self-employed, i.e. they would pass scrutiny by HMRC (tax authorities) should they decide to investigate your club.

It is important to understand that a club cannot just declare that they are in a self-employment relationship with a coach.   A club would have to prove to the tax authorities that the manner in which they work with the coach is genuinely a self-employment relationship, and not one of disguised employment, i.e. the manner in which the club works with the coach is actually one of employment/worker.

If HMRC find that the manner in which a club is working with a self-employed coach is actually one of disguised employment, they will declare the relationship to be one of employment/worker and pursue the club for owed employers national insurance contributions, interest and penalties, dating from when the coach started at the club.

There are three ways that a club can work with a self-employed coach to ensure they would pass inspection by HMRC.    Each will require a contract of services to be in place between the club and the coach outlining the actual working arrangements.

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Ask Mike - Bookkeeping - Club - Coach - Latest - Self-Employment - Tax

Do I need an Invoice before I pay a self-employed coach?

April 23rd, 2017

questioniconYou should ensure that you have a contract with the self-employed worker that states that they will only be paid on submission of a detailed invoice and the contract should also state that the self-employed worker will only be paid if the work delivered is to the satisfaction of the client (the organisation paying the worker).

You should also ensure that you are actually given a valid invoice by the worker and not just a timesheet.        So what should a valid invoice consist of?

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Ask Mike - Bookkeeping - Club - Latest - Self-Employment

Our Coach Never Substitutes – Is this a Problem?

April 9th, 2017

questioniconWe regularly visit clubs where they are relying on substitution as the way in which their coach is truly self-employed with them, but where the coach has never actually substituted.

It is important to note that a coach who has never actually substituted may not actually pass HMRC scrutiny for self-employment status – HMRC would expect to see evidence that the coach HAS substituted in the past and that subsequent payment to the substitute coach was made by the coach and not the client (club).

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Bookkeeping - Coach - Latest - Self-Employment - Tax

Mortgages for the Self-Employed

March 9th, 2017

peniconThere are many benefits to being a self-employed coach – freedom to work where you want, ability to claim expenses, flexibility in the hours worked – but one issue we get asked about by coaches that causes them problems is getting a mortgage.

If you are an employee, all you will need is two or three payslips and a copy of your contract of employment.    The self-employed will find it harder to get a mortgage and the interest rate charged may be higher than that for an employed person.

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Club - Latest - Self-Employment

Paying a Retainer to a Self-Employed Coach

January 24th, 2017

thumbsupiconThe word retainer is often used in sport to describe a fixed fee paid by a club to a self-employed coach/worker for certain services, with the fee usually being paid on an annual basis.

This is not strictly speaking a retainer in the correct meaning of the word – an actual retainer is a fee paid to ‘retain’ the services of a worker, i.e. a payment to ensure that the worker is available to work for the club when required.    It would typically be paid to an experienced coach as an inducement to stay at the club.

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Coach - Latest - Self-Employment - Tax

Calling ALL Sports Coaches – Would You Be Ready for a Tax Inspection?

December 18th, 2016

warningiconHaving just returned from a visit to a sports coach who has just received a letter informing her that she has been chosen for a HMRC tax inspection, we thought it would be a good time to remind coaches to review their business record keeping before they get a call from HMRC and to outline the top five issues coaches have as a result of an investigation.

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Club - Coach - Latest - Self-Employment - Tax

Is your Self-Employed Coach REALLY self-employed?

December 14th, 2016

warningiconHMRC is actively checking the status of self-employed coaches and workers in sport to verify if they are really self-employed or are actually employees.    Clubs and coaches paying other coaches should therefore verify the status of their workers without delay in order to avoid a potentially hefty tax bill.

It is a common misconception in sport that the person paying the worker (the client) can just declare the worker to be self-employed – whether they ACTUALLY are or not will depend on the way they actually work with the person and on the documentation in place.    It is common to get a situation on sport where the worker is a registered self-employed worker and there is a contract in place to state this, yet the worker is declared a employee by HMRC because of the actual way the client and worker work together.

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Club - Coach - Latest - Self-Employment

Same Hours Every Week – Self-Employed?

December 3rd, 2016

tipiconWe regularly visit clubs who have decided to employ their coach/groundsman/cleaner because they were told that they cannot be engaged as a self-employed worker if they require the person to work the same hours week in week out.

This is not correct – you can engage a self-employed worker to work for you for the same hours every week, provided that you have ensured that they are registered as self-employed and that you have ensured that you meet the HMRC self-employment guidelines, i.e. you are working with the person in a way that will satisfy one of three scenarios outlined in the guidelines.

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