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.

Comments
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the dubious nature of this

david5541 |

How is he paid?

memyself-eye |
memyself-eye's picture

What's the problem?

PennyC |

Employment

Monsoon |
Monsoon's picture

PennyC

Monsoon |
Monsoon's picture

Even the HMRC will tell you

david5541 |

Why not ...

Old Greying Accountant |
Old Greying Accountant's picture

Thanks

Monsoon |
Monsoon's picture

Fair do's, but ...

Old Greying Accountant |
Old Greying Accountant's picture

Yeah, but....

WallyGandy |
WallyGandy's picture

@Monsoon

ShirleyM |
ShirleyM's picture

What about "IR35" on incorporation?

Old Greying Accountant |
Old Greying Accountant's picture

yeah thks keep clean and lay low

david5541 |

Wooden spoons?

Monsoon |
Monsoon's picture

No different to CIS

ShirleyM |
ShirleyM's picture

I don't use third party software

memyself-eye |
memyself-eye's picture

update

pawncob |
pawncob's picture

Money Laundering report required?

hclairesavage |

MLR

Monsoon |
Monsoon's picture

A (first ever!) comment to shoot down?

martinatal |

What to do

davidkirk |

Don't forget pension

cfield |
cfield's picture