Employed/self employed tax

ViolaLass

Let's say I worked for someone for a few months and was called, by them, 'self employed', but on completing the HMRC online test found that I was probably actually an employee:

1. Would this make any difference or would HMRC still treat me as self employed? e.g. How would it affect my tax? Presumably I could send in a form detailing what I had earned but would I get into trouble if I had not registered as self employed?

2. Would declaring that I thought I was an employee and not self employed get me or the ex-employer into trouble? What sort of trouble?

Please ask if you need more information.

jer102

Potentially you're at risk, under IR35 legislation. Probably a good idea to get your contract checked to ensure it is IR35 compatible.

You don't mention how you feel you could be classed as an employee rather than a worker, so it's difficult to advise otherwise.

ViolaLass

jer102 wrote: »

You don't mention how you feel you could be classed as an employee rather than a worker, so it's difficult to advise otherwise.

According to the HMRC online test (on their website). I appreciate this isn't a binding test but presumably it is fairly reliable.

Hammyman

ViolaLass wrote: »

Let's say I worked for someone for a few months and was called, by them, 'self employed', but on completing the HMRC online test found that I was probably actually an employee:

1. Would this make any difference or would HMRC still treat me as self employed? e.g. How would it affect my tax? Presumably I could send in a form detailing what I had earned but would I get into trouble if I had not registered as self employed?

2. Would declaring that I thought I was an employee and not self employed get me or the ex-employer into trouble? What sort of trouble?

Please ask if you need more information.

1) Yes, you'd still get into trouble.
2) Yes. Your employer would be hammered by HMRC with a bill.

alunharford

jer102 wrote: »

Potentially you're at risk, under IR35 legislation. Probably a good idea to get your contract checked to ensure it is IR35 compatible.

There is no intermediary (the OP is either employed or a sole trader based on what has been said). IR35 does not apply.

dmliverpool

Isn't it about £7k per employee extra (min.) to employ someone as opposed to contracting them as self employed? It's something I heard I don't know if there is any truth in it...