Written question asked by Cheryl Gillan (Conservative) on Thursday, 12 October 2006, in the House of Commons. It was due for an answer on Monday, 16 October 2006. It was answered by Baroness Primarolo (Labour) on Wednesday, 18 October 2006 on behalf of the Treasury.

Funerals

Question: To ask the Chancellor of the Exchequer whether casual suppliers of services to a funeral director are responsible for their own tax liabilities.

Answer: Individuals who supply casual services directly to a funeral director are responsible for their own tax liabilities only if they are providing those services under a contract for services and, therefore, genuinely in business on their own account. Otherwise where there is an employer-employee relationship between the parties then the funeral director is responsible for deduction of income tax and national insurance contributions (NICs) on any payments made to workers.Where, however, the funeral director has contracted for the provision of a complete service with another firm and they invoice the funeral director for those services, then the firm supplying that service is responsible for determining the correct employment status of its workers and where necessary making the correct tax and NICs deductions.

Secondary information