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.
- Director or self-employed 271 2
- Money laundering and can accountants be sued by clients if they make a report 1,358 25
- 31 Jan Procrastination Question: Computer Monitors 581 17
- Anybody still doing returns? 995 37
- BVI registered 177 4
- Closing a limited company 387 6
- Self assessment for directors 170 2
- Capital allowances on transfer of business 276 10
- Tax Penalty overreaction 2,614 17
- A little knowledge 399 6
- Digita in the cloud 170 2
- Tax relief when working away 91 1
- Tax relief when working away 197 3
- Designated sole Residence 254 5
- Scratch Head 358 1
- Year end 276 2
- US/UK Dual Citizenship 330 13
- Clothing 648 19
- Investment properties/freehold land 179 6
- Parent and subsidiary... 213 5
- Form MR01 (Particulars of a charge) - does this need to be filed if you remortgage with the same lender? 967
- Underpaid VAT assessment and relation to SATR 690
- Did you realise Google will not patch android exploit ... 633
- Latest phishing scam 614
- Cashback for opening business bank acct = trading income? 457
- Auto Enrolment Questions Answered 337
- Loan benefit after person ceases as director/employee 269
- Still Christmas at HMRC? 235
- Sabbatical payments 228
- Negligible Value Claim 210