Updated 30th March 2016
Paying tax is an important part of living and working in a modern democracy. Government tax revenues (if managed correctly) are the means by which the state is able to provide vital services like policing and healthcare, maintain essential infrastructure, and support the most vulnerable members of our society. inploi encourages you to pay your fair share of tax on money earned using our platform.
We have put together some rough notes on your obligations and links to where you can find more information. Please refer to HMRC or a registered advisor with any queries, and to be sure you are paying the correct amount of tax.
Paying Income Tax
Income tax has to be paid on income you earn. This is done through either PAYE or ‘self-assessment’, depending on the type of work you are doing/your employment status. Please see the government’s guidance on paying income tax here. The income tax allowance for individuals in the 2016-17 tax year is £10,800 (and £11,000 for 2017-18): you will only pay income tax on amounts that you earn in excess of this.
inploi takes no responsibility for the nature of the working relationship between our employers and work seekers. Our terms and conditions are clear on the form that we expect interactions to take, but at the end of the day we are merely a platform that connects people - we therefore have no involvement in these working relationships and expect employers and work seekers to act lawfully.
If the platform is used as intended, these are the likely implications for your income tax obligation:
JobMatch is a service for matching work seekers to longer-term work assignments. It is expected that work seekers will join their employers as employees and be loaded onto their payroll systems. In this situation the obligation for withholding income tax and national insurance falls on employers – this is done via “pay as you earn” (PAYE). Employers can find out more about PAYE and Payroll here.
The QuickShift service is intended to connect work seekers to ad-hoc bits of work. It is designed for people who want to work around their ordinary lives – deciding when they want to work and where they want to do it, working for various people on their own terms. Gov.uk provides some useful, must read guidance about Income from “selling services online” here. If your taxable income and taxable state benefits amount to more than your tax-free personal allowance you will have to pay tax. If you are working as an independent contractor, employers will not withhold income tax from your payment and you will be responsible for submitting a self-assessment tax return to report your income. You need to register for self-assessment and submit a tax return, either in hard copy or online. For more information on self-assessment please consult the Gov.uk information page here. You may also be liable for national insurance contributions.