Proving Income Self employed

gibboking

Hi,
I was just wondering and hoping that someone might know the best way of proving my Husbands income.
He is Subcontracted on a Selfemployed basis. He works for the same bloke all of the time and his boss pays income tax for him out of his wages, but he doesn't get a payslip or anything.
My husband just has to write down the hours he has worked each day and hand it in once a week to get his pay cheque.
We need to show proof of earnings so that we can beging our DMP with CCCS.
Any Ideas??

inmypocketnottheirs

In the scenario you have described, i.e. your husband works all the time for the same boss, who deducts his tax, then he is most definately not self employed and definately employed. The fact that his boss does not give him a payslip is not an indication of self employment.

Chortle_2

I am confused - your OH is 'self-employed', but his boss is deducting tax at source? And not providing a payslip? Sounds VERY iffy to me

Normally as a subcontractor, he should be paying his own tax, not having it deducted for him. How do you even know that the guy has been paying the tax to the IR when you have no proof its been deducted in the first place? (i.e. a payslip) - I would be very careful, as it is entirely possible that your OH could be landed with a huge tax bill come the end of the year, if the 'boss' hasn't been paying the IR afterall.

I'd speak to his 'boss' pronto - and get some payslips!

tyllwyd

Yes, it all sounds very dodgy. Has he or his employer been paying national insurance? As an employee, I think he has a statutory entitlement to recieve a statement of earnings (ie a payslip). If he is self-employed, he should have been filling in a self-assessment tax return.

Before he rushes off to do anything, I think he should get some advice (perhaps the Citizen's advice bureau) to find out what the implications are if he discovers that no tax/NI has been paid. If he jumps in and upsets his boss and gets sacked, I wonder if he might find that since his NI is not paid he is not entitled to Jobseeker's allowance, and he might have trouble proving his employment status in an Employment Tribunal, so I think he needs advice asap on the best way forward.

tesuhoha

I know exactly what you mean, because my husband is self employed to a subcontractor in the same way and it is all above board. What he should be getting are tax vouchers from his boss/sub-contractor stating the amount of tax he has been paying. all you have to do then is submit the forms to your accountant. if he doeshis own tax then im not sure i think you just submit the vouchers to the inland revenue with your accounts.

kendo_2

He should get CIS25 vouchers off his 'employer' every month so that when he comes to fill in his tax return he'll know exactly how much he has had stopped. It should be 18% of his gross payment.

tyllwyd

tesuhoha wrote:

I know exactly what you mean, because my husband is self employed to a subcontractor in the same way and it is all above board.

Oh, that sounds much better then! I hadn't realised it worked that way.

gibboking

Hi,
My Huby is paying his NI himself by direct debit, and his 'boss' is keeping 18%of his wages weekly to pay off yearly as group tax on a pinkslip (whatever that is).
My husband is an electricians mate and works with his 'boss' the electrician and another mate who all get subcontracted together. The boss gets paid for the job as a whole and then has to pay my hubby out of that.
Hubby has registered as selfemployed and the tax office didn't mention anything about vouchers. He has now got a CIS card and has been sent a letter about he will soon have to fill in a tax return form.
I did think it was all a bit dodgy at first but the other bloke has been doing the job for over a year and hasn't had a problem (yet)!!
What kind of records should hubby be keeping any ideas??
Thanks

Emmzi

He should have a note of hours worked per week and what he gets in his hand - mybe as he is paid by cheque old bank statements will help for CCCS.

Does he get a P60 at end of tax year?

Does he have a copy of his own self assessment tax form, if he does one?