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.
- SATR - ommission of capital gains 56 1
- Recourse to Accountant for incorrect accounts 2,250 19
- Scanners 162 4
- Overdrawn Directors Loan Account 69 1
- ethical- to continue to act or not? 148 5
- Solar panels - VAT and Capital allowances 227 3
- Recharge for private use of a company car 399 9
- Payment plans for clients 100 2
- General rule: Evidence that the customer is in business 224 1
- Do most of you still use MS Office? 226 7
- Are any of you agents for doctors? 390 2
- Should I move back home away from my office? 437 9
- P60 or payslips? 88 1
- Property income in different capacities 99 1
- IHT dilemma 1,382 21
- Warning for freeagent accountants using payroll import 187 1
- IT advisory questions? 172 5
- Entrepreneurs Relief 793 44
- Has anyone else come across VAT account suspensions? 135 1
- Ceasing in membership of ATT 526 7
- Auto enrolment excuses 1,157
- Feedback on accounts production software for IFRS 796
- Add T&Cs to Sales Order in Sage 486
- Digita Hosted Software 320
- Credit where credit's due....... 270
- Director phone costs 231
- Buying goods in US and selling them to company in US 226
- What to say to Tom, Dick and Harry... 193
- Flat rate VAT- other income calculation 152
- Double taxation relief - same income, different individual 135