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.
- Overdrawn directors loan account. 827 20
- Bookkeeping - Relevant Qualifications? 266 4
- The importance of Grammar 897 24
- New starter - tax code 177 6
- Treatment of private car expenses put through limited company 113 2
- Why does Aweb always take the nuclear option … 2,684 60
- PI cover 97 2
- Capital loss on cessation for a sole trader 123 2
- HMRC site down ? 160 4
- Tax Filer - Transfering figures from partnership to personal returns 139 6
- Small hotel - food for personal use 201 3
- Xero Pain Points 256 12
- Models, agency rules and intermediary reporting 92 1
- Samsung Galaxy - Tablet War 118 1
- Late RTI submissions on change of accountants 159 2
- VAT - How hard is it? 380 15
- Tax Return for arrivals into the UK 152 4
- Copies of every transaction can't be OK!! 593 9
- ACCOUNTING TREATMENT FOR DISBURSEMENTS 234 3
- Childcare 275 4
- Any knowledge of salesorder.com 360
- Chart of account segments; Balance sheet vs P&L 299
- HMRC RTI Filing Problem 285
- Goodwill and the Summer 2015 Budget 280
- Could and would anyone here carry out a hot file review of some non statutory audit work please? 272
- Electric Car 222
- S222 Charge 202
- What is the best acounting software for online international retail business? 196
- Foreign Tax on Pensions 192
- Company Structure 174