My apologies for making this post anonymous. I have been a forum user for many years but would prefer to post this query anonymously.
I have recently agreed to take on the payroll work for a new client who employs a nanny. I was put in touch with her by another client who uses the same nanny (with salary in excess of the personal allowance) so I know that any salary paid to the nanny by the second employer will need to be taxed.
I set up a PAYE scheme for the new client, at which point they advised me that they have been paying the nanny cash in hand for a few months but are not in a position to work out her backdated hours and bring their tax affairs up to date.
Some clarity over what I need to do next would be appreciated. I do not wish to continue to work for this client when they have such little regard for the law, and am aware that I need to make a report regarding the cash in hand work without notifying the client that I have done so.
I am very anxious about the whole affair, and annoyed that I even took on the client in the first place, as the payroll work is not well paid and is already causing a huge amount of stress!
Any advice / confirmation that I am following the correct process would be much appreciated. Would others recommend reminding the client that what they are suggesting is against the law, or would this be considered to be "tipping off"?