We are a First Aid Training organisation. A year ago we were visited by an HMRC Inspector from the local Compliance Dept.
She informed us that we must pay NIC Class 1 contributions on all our free-lance trainers earnings for past six years and hence forth into the future. We have a team of about 20, it would be a substantial amount of money and would make us uncompetitive in the future.
We have successfully rebutted this ill-conceived charge on everything but the First Aid at Work course.
We have insisted on putting this matter to the HMRC Commissioners for decision.
What I need to know is if other Training organisations outside of First Aid have encountered this problem, or are paying class 1 NIC under this regulation on free-lance trainers not operating within the confines of a traditional education establishment. Can anyone help? I am quite willing to share with anyone the detail of how we have managed to refute the initial charges.
Terry Welti
3 Responses
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Ni for freelancers
Hi Terry, this all depends on the status of the freelancers and IR35. Do these trainers work for other organisations as freelance first-aid trainers? if not then this will be a difficult one for you.
IR 35 was introduced specifically for situations like this
Good luck
Mike
HMRC POLICY OF NI & TRAINERS
HMRC has issued guidance to the First Aid Training industry which I feel effects every training provider who users self-employed trainers. I would suggest that training providers read the following on the HMRC website http://www.hmrc.gov.uk/briefs/national-insurance/brief2509.htm
It would be nice to know how far Terry got in fighting this with HMRC.