cash in hand and tax,s

ImpededLoop · Oct 19, 2014

Mike Blair said:
Thanks guys you guys are more help then anyone else I'll call them asap

You can inform them online if you prefer. You'll need to tell them that you work as a sub contractor as that falls under the CIS (Construction Industry Scheme) rules. Under these rules your boss should be deducting your tax before paying you. You then declare this when you complete your tax return.

It's not as scary as it sounds. Good record keeping and the advice of an accountant should be all you need (plus submitting your tax return on time!).

ipf · Oct 19, 2014

ImpeededLoop said:
You can inform them online if you prefer. You'll need to tell them that you work as a sub contractor as that falls under the CIS (Construction Industry Scheme) rules. Under these rules your boss should be deducting your tax before paying you. You then declare this when you complete your tax return.

It's not as scary as it sounds. Good record keeping and the advice of an accountant should be all you need (plus submitting your tax return on time!).

We don't employ self employed without CIS cards. It seems with this 'employer' anything goes.

Octopus · Oct 19, 2014

This all sounds like a slow motion train crash with the loser being the OP.

Be VERY wary of your "employer" as he may be deducting tax/NI but not actually paying it to HMRC.

Do you get pay slips? P60 at the end of the year?

Shocking.

Mike Blair · Oct 19, 2014

il speak to him monday and say can you pay tax / ni for me aswell because im trying to do things by the book best as i can just no one is helping etc :/

SparkyJoe · Oct 19, 2014

I can see that going down well lol, He would't be paying you cash if the tax man was involved, so why bother? I bet you get pumped tomorrow.

dingledong · Oct 19, 2014

Find an accountant! Ask any one you know who is self employed to recommend their one to you . They will give you the best advice ,but do it quickly

shanky887614 · Oct 19, 2014

Murdoch said:
This all sounds like a slow motion train crash with the loser being the OP.

Be VERY wary of your "employer" as he may be deducting tax/NI but not actually paying it to HMRC.

Do you get pay slips? P60 at the end of the year?

Shocking.

its good practise to request your p60 anyway

trust no one, epesically when money is concered

dingledong · Oct 19, 2014

Trust no one especially where the bloody taxman is involved too

Octopus · Oct 19, 2014

dingledong said:
Trust no one especially where the bloody taxman is involved too

I quite agree.

Your "boss" could claim to be paying your taxes to HMRC, deducting from your wages, but if the money doesn't get passed on ..... yes you've guessed it... HMRC will come after you!

Mike Blair · Oct 19, 2014

Murdoch said:
I quite agree.

Your "boss" could claim to be paying your taxes to HMRC, deducting from your wages, but if the money doesn't get passed on ..... yes you've guessed it... HMRC will come after you!

thats abit out of order isnt it? would i be in the wrong still if my boss says hes paying it but doesnt?

Octopus · Oct 19, 2014

Mike Blair said:
thats abit out of order isnt it? would i be in the wrong still if my boss says hes paying it but doesnt?

And this is exactly why you should ask for a P60 - this will confirm all the deductions etc and then the employer is up a creek without a paddle.

No P60 and you're up the creek!

dingledong · Oct 19, 2014

Yes you could be as well as him
Speak to every self employed person you know and get an accountant , speak to him ask him questions ,ask him if you could get in trouble .
Start making notes of your incoming and outgoings and keep them take them to your accountant every 3 months
If any thing does go wrong ( not saying in any way that it will ) you have covered yourself ! !
You can show them your books and will be ok
Ok

davesparks · Oct 19, 2014

Mike Blair said:
thats abit out of order isnt it? would i be in the wrong still if my boss says hes paying it but doesnt?

If you cannot prove that he has claimed to be paying tax for you then you are in the wrong.

If he gives you a CIS statement each week detailing exactly how much tax he has deducted and you show this to HMRC when they come knocking then he will be in trouble if he hasn't .
If however all you have is his verbal assurance that he is paying your tax then when HMRC come knocking then it'll be you who gets prosecuted unless he stands up for you and admits he was conning you.

trev · Oct 19, 2014

Murdoch said:
I quite agree.

Your "boss" could claim to be paying your taxes to HMRC, deducting from your wages, but if the money doesn't get passed on ..... yes you've guessed it... HMRC will come after you!

Not necessarily mate. I've been there, if you have payslips detailing the supposed deductions that have been taken from your gross and paid over to HMRC then you are in the clear. It's the same as when a company goes bust, one of the major creditors is always HMRC for unpaid paye and nic. They never go after the employees.
The difficulty comes from if you're SE and a customer goes under, HMRC still want their pound of flesh BUT you're allowed to claim bad debt relief.