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On 6th April 1993 a procedural code of practice was adopted
by all Machinery Rings in Scotland. This code of practice
sets out requirements for Ring Managers to comply with when
the service 'LABOUR' is supplied through the Ring.
The Rings recognise only two classes of labour ; namely EMPLOYED
and SELF-EMPLOYED. If a person is not an employee then he/she
is treated as self-employedby the Ring.
EMPLOYED LABOUR
If a member business supplies an employee of his/her business
we have no requirements under the code ofpractice.
SELF-EMPLOYED LABOUR
If the person supplied is not an employee of the business
then he or she is deemed to be self-employed. Whether you
are a one person business or a large employer is not relevant.
If the 'Labour' provided is yourself, then you must provide
proof of self-employment.
Proof of self employment is defined in the code of practice
as "A LETTER FROM THE SUPPLIER'S OWN ACCOUNTANT STATING
THAT REGISTRATION FOR TAX AND NATIONAL INSURANCE HAS BEEN
APPROVED BY THE IR AND DSS."
A copy of this letter must be kept on file in the Machinery
Ring office.
If you do not have an accountant, the Inland Revenue ask
the Ring to furnish them with the name, address and tax reference
of the individual. However if you have not been self-employed
for more than one year and so not submitted a set of accounts,
then Centre 1 from our experience will not recognise you as
self-employed from the code of practice point of view and
therefore you would be ineligible to join the Ring.
This code of practice relates only to 'labour' supplied on
its own and does not apply when it is provided either with
a machine such as a tractor or combine, or where tools of
the trade are provided such as a joiner, builder or electrician.
All self-employed individuals, who apply to join the Ring,
mainly or soley to provide labour, are required to provide
a letter from their accountant confirming their self-employed
status as described above, before they can be admitted as
a member of the Ring.
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