Wife been told no longer salaried, has to sort NI and tax - advice please :)

puddles · 8 September 2015 at 2:50PM

Kayalana99 wrote: »

Your over complicating it personally, I don't agree with what the business owner is doing but at end day it's nothing to do with you or your wife. (I don't mean that as you're being nosy, I mean that as what she does that gets her into trouble doesn't affect your wife at all unless she got caught and shut down etc and wife loses her job which is unlikey, but you can't make her declare the income.)

As far as you should be concerned, let her pay your wife however she likes cash / bank etc...your wife declares self employed fills in the right boxes and done. You start poking holes she might end up getting a new hair dresser in.

But as others have said, at that point she is no longer covered by the salon insurance.

If they made her redundant because she didn't want to take cash in hand, and just replaced with another stylist, would that not be wrongful dismissal?

puddles · 8 September 2015 at 4:51PM

Sorry to keep bumping this with my own posts, but if my wife were to accept the change to Self Employed, would she have to bill the salon so that she has a record of what work she has done for her end of year accounts?

As self employed, I assume, no matter whether she hits the tax threshold or not, she still has to declare all her earnings every year?

Her boss has said that she doesn't need to worry about NI contributions as with a child under 16 she is covered for that. Is there any truth in that?

Thanks once again - the feedback and replies I have received today have been amazing.

Mojisola · 8 September 2015 at 5:13PM

puddles wrote: »

Her boss has said that she doesn't need to worry about NI contributions as with a child under 16 she is covered for that. Is there any truth in that?

No.

Don't believe anything this woman says - she's going to end up in trouble - make sure she doesn't drag your wife down with her.

patman99 · 8 September 2015 at 7:23PM

Might beorth asking the HMRC what they think about the salon owner and her attempts to make her staff s/e in order to avoid having to pay into a pension scheme. You would want to ask HMRC if this constituted a breach of Rule 35.

specialboy · 8 September 2015 at 11:36PM

From reading the op it seems that the change has come about because of the new pension rules that are about to come into force which will be an extra cost to the employer, OP, your wife can opt out of this scheme if she wants thus preserving the status quo.