Self Employment Dodge

Confuddled.com

Hi,

This is quite bad, but I work for a company as an employee, but they haven't registered me and say i need to register self-employed. Apparently, according to the HMRC website, I can't because I qualify as an employee, not a sub-contractor, or such like.

At the same time I make a little money online, this used to be very small, but now I make around £1000 a month.

I haven't paid any tax for 3 years, I wouldn't owe a lot, because until recently I wasn't earning enough to be taxed. I was receiving a private income of £600 though.

I was wondering, how could HMRC find out if I'm employed, do they have access to bank accounts? Will I get into a lot of trouble? And, if I register now as self-employed, but lie about the non-qualifying job so that I can add that to my self-employed income *** As an aside quickly, my employer, I've just found out, has pretended to have had all employees on PAYE - except me and 1 person who he told to register self-employed - but hasn't for 3 years, so HMRC will come after him soon, and may find me? ***, will I have to pay tax on the past 3 years, will they investigate the past when i register self-employed? I actually want to pay tax because I feel it's morally right, but I can't afford a back log in tax as I have a very small income anyway.

Does anyone know the answers to these questions? I know I've waffled. Thanks.

GavB79

Phone HMRC, declare everything, and pay what you owe.

Quenastoise

You are definitely an employee, your employer is trying to save themselves the cost of PAYE and NI and all the paperwork that goes with employment.

Be firm with them. If necessary point out to them that in the event of a visit of the Revenue to inspect their records, THEY would be liable for any tax that should have been deducted from your wages under PAYE.

Frankly, you may need to rethink your relationship with the company - I personally would stay well clear.

orangeslimes

Confuddled.com wrote: »

Hi,

This is quite bad, but I work for a company as an employee, but they haven't registered me and say i need to register self-employed. Apparently, according to the HMRC website, I can't because I qualify as an employee, not a sub-contractor, or such like. [/SIZE][/FONT]

I think it is mostly their problem - not yours.

At the same time I make a little money online, this used to be very small, but now I make around £1000 a month.

On the other hand you should be declaring this

I haven't paid any tax for 3 years, I wouldn't owe a lot, because until recently I wasn't earning enough to be taxed. I was receiving a private income of £600 though. [/SIZE][/FONT]

I was wondering, how could HMRC find out if I'm employed, do they have access to bank accounts? Will I get into a lot of trouble? And, if I register now as self-employed, but lie about the non-qualifying job so that I can add that to my self-employed income *** As an aside quickly, my employer, I've just found out, has pretended to have had all employees on PAYE - except me and 1 person who he told to register self-employed - but hasn't for 3 years, so HMRC will come after him soon, and may find me? ***, will I have to pay tax on the past 3 years, will they investigate the past when i register self-employed? I actually want to pay tax because I feel it's morally right, but I can't afford a back log in tax as I have a very small income anyway.

They might investigate you but not necessarily - HMRC will charge your employer for the unpaid PAYE not you, if they deem you were an employee.
If in doubt seek professional advice...i.e. an accountant when you fill in your tax assessment forms they will expect you to include income from your employment so I am not quite sure how you would go about filling it out.

Hammyman

Confuddled.com wrote: »

At the same time I make a little money online, this used to be very small, but now I make around £1000 a month. [/LEFT]

If you don't have any accounts and are unable to provide proof of income and expenses for this period you didn't bother registering, HMRC will estimate your income based on the average for that sector in your tax district. You will be sent a bill based on that average and you will have to pay it regardless of how much or how little you made. And you'll probably find a few hundred quid in fines on top.

The alternative is try and get away with it but then that is deliberate tax evasion and prison time.