Change in Circumstances

Bill_Jack

Has anyone any ideas regarding a sudden change in my employment cicumstances?

For the last two years I have been employed on a "self employed" basis by a local business as a handyman for 20 hours per week. I am registered as self employed with HMRC and and pay self employed NI Contributions. A month ago I was advised that I would not be required from 31st May.

To compound the matter further I am unable to drive for the next year due to health problems, and this is obviously not helping my search for other work due to living in a small village.
I am unable to claim benefits it would appear because I have managed to save in recent years, and this now works against me!!

Does anyone know if there is any way of only declaring some of last years income and therefore reducing the amount of tax payable, and declaring the balance of last year's income this year?
At least that way I could survive a little easier!!!

Regards

Bill

fengirl_2

What you are suggesting is tax evasion which is against this board's policy.

I would query whether you were truely self employed and this has impacted on your ability to claim JSA. Employers often try to say someoone is self employed in order to avoid NIC, holiday pay, sick pay, etc and people accept the situation innocent of the impact this could have on them.

Bill_Jack

It was not my intent to suggest such a thing as tax evasion, my thoughts were purely related to a comment someone made in the pub, linked to the fact that the new tax year has only recently started!!!

It was interesting what you said as regards "employers often try to say someoone is self employed in order to avoid NIC, holiday pay, sick pay, etc and people accept the situation innocent of the impact this could have on them".
I am going to investigate this further with my local CAB, as my hours had to be worked on specific days at specific times!

I have not even thought about claiming JSA.

Once again sincerest apologies. No abuse of this forum was intended.

Bill Jack

maninthestreet

Bill_Jack wrote: »

It was not my intent to suggest such a thing as tax evasion, my thoughts were purely related to a comment someone made in the pub, linked to the fact that the new tax year has only recently started!!!

It was interesting what you said as regards "employers often try to say someoone is self employed in order to avoid NIC, holiday pay, sick pay, etc and people accept the situation innocent of the impact this could have on them".
I am going to investigate this further with my local CAB, as my hours had to be worked on specific days at specific times!

I have not even thought about claiming JSA.

Once again sincerest apologies. No abuse of this forum was intended.

Bill Jack

So what would you call knowingly not declaring all of your income from the last tax year to HRMC, if it's not tax evasion??

Hammyman

Bill_Jack wrote: »

It was interesting what you said as regards "employers often try to say someoone is self employed in order to avoid NIC, holiday pay, sick pay, etc and people accept the situation innocent of the impact this could have on them".
I am going to investigate this further with my local CAB, as my hours had to be worked on specific days at specific times!

You were an employee. Basically too be self employed, you must have control over the hours, choose who to send to do the job and have liability. The requirements are all on the HMRC website.

Firstly, you'd have to get HMRC to say your status is "employed". They'll then go after the person for not paying employers NI.

Once your status has been confirmed to be "employed" by HMRC I'd take them to an employment tribuneral. You won't be penalised but they will. You'll be in line for several things:
1. Redundancy pay
2. A weeks pay in lieu of notice
3. Unpaid holiday pay for two years.
4. (not guaranteed) £1500 because you weren't given a written contract of employment.

I wouldn't go for anything less but I'd not deliberately claim for the contract but mention you weren't given one. Its an absolute offence with a fixed payout.

Regarding JSA. You will need to phone HMRC and end your self employment in order to sign on. When it comes to the self assessment form for 2010-2011, you will need to declare earnings from S/E and also JSA payments.

fengirl_2

Hammyman is correct in his advice to get HMRC to rule you are self employed. However, ET's are not obliged to accept HMRC's rulings on employment status and they do often make rulings totally against HMRC's. Still, wont cost anything to try.