Self assessment for dubious employment status
If an employer engages a worker under an arrangement that is 100% that of employment, but insists the worker is self employed, what does the employee need to do to ensure compliance?
I do not feel that registering as self employment is correct (as they are not self employed, despite what their employer might want), but as they know they aren't getting tax deducted at source, they therefore know they have untaxed income and thus have a liability to register under SA.
Would it be correct to therefore complete the employment pages and state no tax deducted, and give the employer's details? There is no PAYE scheme in place.
The employee wants to pay taxes due, but is more concerned with NI. They also want to keep their job.
I don't see any merit in shoe-horning this person into self employment in SA as they are just a worker, no real expenses, and indeed they are not truly self employed.
The correct answer is of course, "The employer needs to operate PAYE correctly" but this is not going to happen unless HMRC hit him with a big stick. There is no guarantee that shopping the employer will result in the use of said stick.
I am of course aware of MLR implications, I'm more concerned with the practical issues and how to protect the client.
- Client in dispute with Customer over cancellation charge 551 22
- Impairment in value of subsidiary - allowable? 116 4
- How much do you pay for Xero? 209 2
- Directors exempt from AE? 495 9
- The importance of Grammar 1,558 50
- VAT reverse charge on consulting from EC 88 2
- Client Require Tax Return and Profit and Loss for Housing Benefit claim 126 1
- VAT Reclaim 163 7
- How to network with other Accountants? 223 2
- Employment Allowance 153 2
- exemptions from CIS 167 3
- How to treat NI and PAYE for overseas staff employed in UK? 215 1
- Volontaire International en Entreprise (VIE) 148 3
- Using Xero with Barclays & Lloyds and multi company usage 360 3
- VAT - How hard is it? 1,521 52
- Option to tax by two individuals "together" not as a Ltd company 169 2
- Cut-off accounting question 349 7
- Freehold management company 93 1
- account in joint names - gift? 205 3
- DIRECTOR LOAN ACCOUNT AND BALANCE 529 10
- Any knowledge of salesorder.com 391
- Chart of account segments; Balance sheet vs P&L 344
- Could and would anyone here carry out a hot file review of some non statutory audit work please? 326
- Goodwill and the Summer 2015 Budget 309
- Electric Car 264
- S222 Charge 228
- What is the best acounting software for online international retail business? 224
- Foreign Tax on Pensions 209
- Company Structure 202
- IP trans to holding company 166