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.
- Past rental expenses 331 6
- Let Property Campaign - Joint Owner Died 116 3
- Employee leaving mid month and Payroll Manager 1,228 26
- Are there any auto-enrolment engagement letter templates? 1,456 35
- Accountant let me down 626 6
- 2020 Annual Conference 161 2
- Professional Clearance 1,218 29
- Client right to working papers 1,434 10
- Growth Street 169 2
- Client has two UTRS, How do you get HMRC to correct this? 243 9
- Microsoft One Drive 620 23
- SA302's - What's the deal? 500 8
- Online Back Up 288 7
- Filing a company valuation with HMRC 111 1
- Financial Advisor / Mortgage Brokering 133 1
- Vat application refused 219 1
- Professional Clearance 433 6
- Self-employed 589 14
- Redeemable loan note - loss 106 1
- IHT400 or IHT205 - disagree with solicitor 328 3
- NHS finance professionals 631
- Auto Enrolment and Foreign employers 401
- Foreign Pension Contribution 368
- Employee's statement of sickness (SC2) form - no longer available as downloadable pdf 345
- vat gross profit percentage margins 344
- Pre Season Invoice dated September how do you treat the VAT as not due until May 16 321
- Quickbooks online filing of VAT 299
- SWAT AML v Anti Money Laundering Compliance Plus (AMLCP) 290
- Does pension term assurance count for unused relief purposes? 248
- IFA income recognition & reporting 209