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.
- Limited Company - Personal Bank Account 2,582 48
- Incorporation with pending court case 101 2
- Paint Manufacturer Flat Rate Scheme 350 17
- Know it alls (who don't) 686 15
- Interest Free Loan - Salay Sacrifice? 131 3
- VAT on motor expenses 964 36
- Cleaners wages at small church -PAYE or self employed ? 513 11
- Machine games duty in quickbooks 92 3
- Deduction from net or gross pay? 240 4
- Share swap 451 17
- CIS Deductions 141 6
- Auto enrolment for one or two director companies 1,846 28
- Company overdue but wants to be struck off 465 14
- Moneysoft Payroll Windows 8.1 Woes - Help! 857 17
- How to account fot Cross-border vat. 182 4
- Check my logic on this please? 269 1
- VAT Margin Scheme for Second Hand Watches 97 2
- VAT reports on trade debtors and trade creditors 241 6
- Late P45 227 5
- CIC accounts submission 115 3
- Skandia using wrong address 1,567
- Nil Rate Band Trust - index linked debt by way of charge over property 865
- International interest certificate 476
- NOVA 333
- Subby expenses subject to tax & NI? 253
- Can Limited Company Buy Share of Rental Property? 243
- Management expenses for investment company 226
- Bonus Bonds 220
- Have we escaped Gift with Reservation of Benfit & Pre-owned asset charges? - Gift after benefit 209
- Help with tax codes on Sage 165