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.
- Solicitors Clients Monies 27 1
- Bookkeeping and a/c reconciliation for a members club - advice please 84 4
- AML checks 154 3
- What is IRIS World like? 159 4
- s75 ICTA88 Management expenses - idiots guide 336 13
- Xero - Should I partner with them 441 9
- Sage import sales invoices with due dates 84 2
- HP VAT with flat rate scheme 123 1
- Director needs to withdraw 45k lump sum from company 473 7
- Micro entity accounts - cessation of trade 91 1
- Spellcheckers 170 1
- How long to process paper 64-8 (SA)? 283 5
- Sage Bank rec 113 1
- ERS reporting - online filing 254 7
- Is business bank account compulsory for all businesses? 157 1
- Transferring debts between company balance sheets. 149 6
- Small Company sold building, how to show in accounts 227 6
- Contract Hire Van, reclaiming input VAT 220 2
- Just for fun. 1,271 46
- Directors Share Purchase 342 14
- Has anyone been affected by the RBS payment breakdown? 399
- Straight line write off of Purchase Goodwill ??? 379
- Self Assessment - What to enter on the return 359
- Perkbox 335
- FRS 102 compliant illustrative accounts for an insurance company 279
- Document Management Systems 271
- WIP Software 261
- CGT, PPR and transfer of equity to spouse. 196
- No payroll scheme in place 188
- Nomisma feedback? 185