Hi guys. I am very new to this and recently set up as an AAT member in practice.
Someone I know from the gym as asked me to do his accounts for him.
I am a little bit cautious at the moment though so suggestions would be very helpful.
He is classed as self employed since June 2011 but only told HMRC a couple of months ago so hasn't submitted anything yet to them. What concerns me though is the fact he is only working for one person and doing that on a full time basis. I advised him that this could be seen as employed but the client who he is doing work for has told him this is how he wants it done.
Should I cover myself with a letter stating my views or leave well alone?
Thoughts please - oh and thanks for the forum have been following it for the last couple of months as I embarked on this project.
welcome to the forum and congratulations on getting your MIP.
there is no doubt that this is disguised employment that the person he works for sees as a way to avoid employers NI, sickpay, training, etc. and keeps the ability to get rid of your acquaintance at a moments notice without reason.
There would be tax implications for both the business and your potential client in the event of an investigation into your client who has probably won one of those by not registering self employed when they should have.
On the flip side your potential client has not done anything intentionally illegal.
The client has come to you to represent them which I am sure that you can do a good job of.
That they only have one client themselves is not the issue to yourself but you should advise the client to find more than one business to service at risk of being deemed an employee.
I see no reason from what you have written not to represent the client... Just get your money up front and set up a standing order for ongoing fee's as the likelihood is that they will not be self employed for long.
Have a chat with the client and even put the chat in amn email where you create written evidence of verbal representations where you confirm that although your client only currently services one business their intent is to service multiple businesses.
The case would be differnet in the case of a limited company run as a personal service company but that would still not prevent you from representing them.
Remember that sometimes we have to also have to consider our own commercial realities.
I look forwards to chatting... Now go get em and hope that this is the first of many new clients for you,
kind regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
