Should I invoice as asked.

Marcon

Sgtdibble said:

thebrexitunicorn said:

Does the business pay you holiday pay?

Yes. I even had 2 weeks holiday last October then whilst off got covid and ended up off for 3 weeks in total, paid in full. Same for a 2 week Christmas period, paid in full plus a bonus. 

The more you say the more you seem to confirm you are an employee, even without the wage slips. So sending 'invoices' makes no sense at all. That said, it might be something as simple as his approach to sorting out the fact he's failed to issue payslips, and he thinks this might get round it. You really do need to talk to this friend and see if you can sort out what he's thinking - and if you can't get onto the same thought plane, time for you to take proper (paid for) professional advice. Nobody here, however willing, is going to be able to help you sort this out.

Ath_Wat

Sgtdibble said:

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. 

I'm sorry,  and I'm sure you are not trying to be dishonest here. But none of this makes sense. You don't buy your own company car. And your employer doesn't give you money to buy a car that is a company car but is your personal vehicle in your name.  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. 

Best case scenario is that you have both been incredibly disorganised and naive. But I'll be honest and say that even on the bare facts you've given I could construct a good argument that you are self-employed. A believable one. Please get professional paid advice. This could go horribly wrong. 

I struggle with you not knowing of net salary negotiations. I know a lot of people that have done this, even in big corporates like kpmg and Citibank. I think it makes perfect sense. Look at what is happening now with NI increase (ironic in my case) that wouldn’t have affected my net income. 

See, that I don't know of, although it might happen in some industries.  I've know of net salary negotiations where that's been agreed and they've worked out a gross, I really don't know anywhere that would preserve that net in case of tax and NI changes.  Not to say it doesn't happen, but not knowing about it isn't weird.  What if your tax position changes?  I would say that expecting a small company to absorb an income tax increase is really unusual.  It might mean of course that your employer had no bloody idea what you were asking of him, and as your communication with him doesn't seem the best, in that you didn't immediately walk into his office and say "What the hell is this?", that seems most likely to me.

kimwp

I think:
- check your tax account to see if tax has been paid. If not, then;
- get this professional advice that people are talking about (personally I've no idea who this would be from - accountant?) - about where you stand in relation to hmrc and paying the tax depending on the outcome of the following conversation. Consider how you would pay it if you needed to. 
- with your boss/friend - going in with the assumption of good intent on his part, explain what your understanding was - that you were an employee and that the money you received was after tax and NI had been paid. And that submitting invoices would make it look like you are self-employed and now have to pay your tax and NI. Then seek to understand his understanding of the situation.
-  If it's clear that he is dumping a tax mess on you and doesn't care, then he is no longer your friend. I'd suggest at this point agreeing to nothing, ending the discussion and having a think about your next steps re HMRC. 
- If it seems he's just messed up, try to reach an agreement. (Might be best to think beforehand if you are happy to meet half way). Then be open with HMRC about the confusion and agree how to rectify the tax.

Best of luck.

Ps, you might want to think about the type of people you are. If he's likely to be able to reassure and persuade you without being sincere (and "taking care of you" rings that alarm bell with me personally), then you need to go into the conversation being very clear about where you stand re tax etc as a result of the possible outcomes and what you are not willing to negotiate on. 

Marcon

kimwp said:

I think:
- check your tax account to see if tax has been paid. If not, then;
- get this professional advice that people are talking about (personally I've no idea who this would be from - accountant?) - about where you stand in relation to hmrc and paying the tax depending on the outcome of the following conversation. Consider how you would pay it if you needed to. 

Depends where this goes. An accountant (the employer) or a lawyer (the employee) - hopefully the former rather than the latter, unless this becomes a dispute between the two.