Tax fiddle?

dave2

At least in theory there can be complications regarding expense claims and such but generally the "employer" takes by far the brunt of any fallout. Worth being aware of but I wouldn't be letting it keep you awake at night

The whole chair renting thing is normal in the industry so I doubt HMRC will be going after her unless they decide to have a targeted push at the whole industry, in which case chances are she'll not be one of first the ones picked out of a hat (so to speak), instead would read about it in the industry paper / her accountant and just change things going forward. Could have a look at the tests (particularly direction & control and right to substitute), sometimes these prompt people to see a business opportunity to increase their income anyway whilst incidentally also helps defeat a test.

(by the way that link was the first one I saw on google, I didn't read anything else they have to say and am not suggesting you do either)

JimmyTheWig

moneywondering wrote: »

Think I understand what is going on now, they seem to base her salary on takings less VAT and then add the VAT back and work out 40% of that amount. Seems as though they've taken VAT off at the current rate of 17.5% and then added it back at the old rate of 15%!!!

The question is, according to her agreement, is she paid 40% of gross takings or 46% of net takings?
Previously they've been the same. Now they're different.

moneywondering

JimmyTheWig wrote: »

The question is, according to her agreement, is she paid 40% of gross takings or 46% of net takings?
Previously they've been the same. Now they're different.

Her agreement is 40% of gross takings. She used to be paid 47% of net, which then reduced to 46% when the VAT rate went down but has now remained at that rate.

Thanks for all your comments everyone. Understand where we stand now, so no further replies needed.

Cheers