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Jay


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Good afternoon.

An existing client has delivered his paperwork to me and advised a change of his profession

Previous years he has been a self-employed market trader. 

During 2011/2012 he ceased as a market trader and is now self-employed  undertaking deliveries from a company that has a contract with a large outlet.

When discussing this with him, I have no doubt that he cannot be classed as self-employed.

He has set days and hours, he is unable to send someone else to undertake his work, he has no financial risk, he supplies no tools or equipment, and he is paid a set amount every day. He drives the company van, which is taxed, insured etc. by the company etc.

The issue here is that he said when this was raised to the company by the previous driver; he was told his services were no longer needed.

Despite my client now being aware of this he still wants to retain this job

I suspect that should HMRC investigate this it would seek for the company to pay the lost grossed up PAYE/NIC for each worker.

Do I simply prepare the Return as instructed, or am I required to inform HMRC of my concerns which could ultimately mean my client losing his self-employment

 

Thank you

 Jay



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MarkS


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Jay

I would advise the client of your concerns then leave it up to them what they want to do.

After all if anything comes from it, it is up to the client to prove they are self employed not you.

I would then prepare the self assessment tax return but put notes in your file of the discuss you have had with the client and your conclusions.

Regards

Mark



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Mark Stewart CA

http://stewartaccounting.co.uk/

Providing accounting, bookkeeping, payroll and tax services to small and medium sized businesses across Central Scotland and beyond.
Jay


Senior Member

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Posts: 262
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Good Morning Mark.

Thank you for your response.
Its always reassuring to receive another opinion.
I agree 100% with your advice.

I just wonder what happens when the Company (not Ltd ) prepare their Returns as this seems to have been ongoing for some years.





Regards


jay



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