Should I invoice as asked. 24 March 2022 at 3:12PM in Employment, jobseeking & training 24 replies 801 views

Sgtdibble

Bit of a strange one this.

I started working for a flooring contractor that I have known for many years. My monthly "Salary" was agreed along with company phone/car etc.

I am a year in and although discussed periodically, he has now asked me to invoice him for every payment I have received. I believe this will leave me open to a massive tax bill as I can only assume he has not paid my NI/IT/Pension etc. 

As mentioned I had asked periodically for wage slips but it was always deflected or delayed, but he has now said he needs the invoices for year end 31.03.22.

In this mess also, I have purchased my own car on finance which he includes the monthly payment amount in my monthly pay. So, I am paid £2500 per month, but since I purchased the car he has added another £380 in totalling £2880 going into my bank. 

I have been paid for any expenses I have incurred so have no real outgoings to show for if I have to do a self assessment. So I am receiving the agreed net monthly salary but if I invoice it, I will be left with a tax bill.

Should I just not invoice him so he has the tax liability? Should I report him? 

Can anyone suggest what I should do please? 

Sgtdibble

Phone is company phone, fuel is paid by company.

Marcon

IanHeb said:

Bit of a strange one this.

I started working for a flooring contractor that I have known for many years. My monthly "Salary" was agreed along with company phone/car etc.

I am a year in and although discussed periodically, he has now asked me to invoice him for every payment I have received. I believe this will leave me open to a massive tax bill as I can only assume he has not paid my NI/IT/Pension etc. 

As mentioned I had asked periodically for wage slips but it was always deflected or delayed, but he has now said he needs the invoices for year end 31.03.22.

In this mess also, I have purchased my own car on finance which he includes the monthly payment amount in my monthly pay. So, I am paid £2500 per month, but since I purchased the car he has added another £380 in totalling £2880 going into my bank. 

I have been paid for any expenses I have incurred so have no real outgoings to show for if I have to do a self assessment. So I am receiving the agreed net monthly salary but if I invoice it, I will be left with a tax bill.

Should I just not invoice him so he has the tax liability? Should I report him? 

Can anyone suggest what I should do please? 

I fear I know the answer to this, but just in case....do you have any sort of written agreement (exchange of e-mails might do the trick) covering the basis on which you were working for this contractor?

What exactly was discussed 'periodically' - and why did you allow yourself to be deflected for a year when asking about payslips?

It certainly sounds quite a mess and as already suggested, some employment law advice might be a very good idea - and could save a lot more than you pay for the advice.

Ath_Wat

Surely you'd agreed an amount you were to be paid, and were aware that if that full amount was being paid to you then he can't have been deducting tax from it?  

comeandgo

What was it you were doing?  Were you working in the construction industry?  You need to sort out whether you were employee or sub contractor as the tax liability will be different.

Sgtdibble

comeandgo said:

What was it you were doing?  Were you working in the construction industry?  You need to sort out whether you were employee or sub contractor as the tax liability will be different.

I am a contracts manager, so not involved in any "on site working". Getting business and pricing jobs basically.

Sgtdibble

I’m not arguing my case whether I am or not, I’m asking.

I agreed a net figure due to problems with company car tax and pension increases in a previous employ. Agreeing a net figure assured bring home pay no matter what happens. 

Ath_Wat

I think the first thing you have to do is say to him "What's going on here, are you expecting me to pay tax out of an agreed net salary?".

theoretica

Sgtdibble said:

I can only assume he has not paid my NI/IT/Pension etc. 

Can anyone suggest what I should do please? 

Check with your Tax and NI records with HMRC?  Then you would know, rather than assuming.

Ath_Wat

Jillanddy said:

Sgtdibble said:

I’m not arguing my case whether I am or not, I’m asking.

I agreed a net figure due to problems with company car tax and pension increases in a previous employ. Agreeing a net figure assured bring home pay no matter what happens. 

.  And it's so far out of "normal" to agree a take home,  net, salary as to be on another planet. Personal circumstances impact on what your NI, tax, student loans,  or any other deductions would be. Impossible for an employer to work that upwards to a gross salary. 

Actually, I have known it happen.  

But it would seem to be stretching credulity to think that they worked out a gross amount that allowed the OP to be paid exactly £2500 on the nose every month, even after the car appeared.

comeandgo

I have known companies agree net pay with employee and leave it to their accountants to gross it up accordingly but I did only work in the construction sector verification of payroll so know it happens there, not sure on other industries.  Ok, I don’t think you would be under CIS if deemed to be self employed as that would really drop your flooring contractor in it, but if you give an invoice for your time then it gives the flooring company the excuse  they thought you were self employed and leaves you with the problem of self employment.

You need to  ask the flooring company why they want an invoice.  It does sound as though they have not put you through as an employee and their tax year end is coming in fast and their accountant has been pushing for something to put against your payments.