Tax advice

[makeitfit]

Any tax type experts around these parts then?
I appear to have fallen foul of HMRC
5 years ago I employed a guy and had to do some PAYE nonsense for deducting his tax etc .
So after all the grief that went with that "Payroli" scheme I decided not to employ him anymore and put him on a self employed basis. This saved me accountant bills and he got the wages in his hand. All cool.
BUT I've just found out that I should have deregistered from said payrole scheme:augie but ofcourse I didn't:doh
I've now had a bill for over £3000 for fines for none returns of the payroll .
Even though I've not employed anyone since 2006, the scroats at HMRC still want their flesh.
Any ideas?

 

[lacroupade]

No specific expertise on that one but surely even if he was SE weren't you supposed to retain 25%? If you didn't then I suspect they will be keen to discuss as he may well have got away with his own tax. One assumes you ignored a lot of reminders? :augie

But defo one for your accountant TBH - could be one of these negotiable situations.

 

[makeitfit]

er, well some reminders could possibly have been filed incorrectly :augie
Some building trades had CIS of sort where deductions needed to be made, but not in this case as I was not his main "giver of work".
I was hoping to negotiate down to NIL :lol

 

[solarman216]

I had a similar situation a few years ago when my partner and I employed half a dozen guys on SC60, but we got fed up with all the paper rubbish, so scaled down and stopped employing them, tax man after a couple of months sent me a latter that threatened court action as we had not sent in a regular monthly amount of deductions, I wrote once to say we were no longer employing these guys, but still the letters came, all went in the bin, on day I had a phone call, from them and I explained the situation, and at the same time told them that if they did not enclose a stamped addressed envelope then it would be treated as junk mail and would be binned, I always had a SAE after that with every communication, stand up to them, I have had many rucks with them and always won, including once when they told me a British passport was not good enough to prove who I was in the main Hastings Office, I let ripp to the extent that the manager came out and had to intervene, need less to say I came away from that office with what I wanted, Rick

 

[lacroupade]

But for example Pete, a quick search throws up this, for example...I'd get down the accountants PDQ mate. The whole area is a minefield, especially with the clampdown they've had in recent years on the whoe SE thing....I mean these days, if you work for the same employer most of the time then you can't be SE by definition - some still get away with it, but joined-up government is getting closer and closer....

If you choose to use a self-employed contractor you need to obtain evidence that they are registered with HMRC and keep a record of their national insurance number and address. If you are in doubt regarding the self-employed status of a contractor who represents themselves as being self employed (and is therefore hoping to be paid without deduction of tax), it is very important that you seek professional advice or obtain clearance from HMRC, prior to making any payments to them otherwise HMRC can seek payment from you of the PAYE and National Insurance together with interest and penalties.

If you choose a contractor who operates through his own limited company, then you can accept their company invoices for gross payment, without deduction of any taxes. VAT can be recovered if they are registered for VAT, unless you are operating the flat rate VAT scheme. In case of HMRC enquiries a copy of their Certificate of Incorporation and VAT certificate should be obtained.

 

[TONUP]

I had a similar situation a few years ago when my partner and I employed half a dozen guys on SC60, but we got fed up with all the paper rubbish, so scaled down and stopped employing them, tax man after a couple of months sent me a latter that threatened court action as we had not sent in a regular monthly amount of deductions, I wrote once to say we were no longer employing these guys, but still the letters came, all went in the bin, on day I had a phone call, from them and I explained the situation, and at the same time told them that if they did not enclose a stamped addressed envelope then it would be treated as junk mail and would be binned, I always had a SAE after that with every communication, stand up to them, I have had many rucks with them and always won, including once when they told me a British passport was not good enough to prove who I was in the main Hastings Office, I let ripp to the extent that the manager came out and had to intervene, need less to say I came away from that office with what I wanted, Rick

Bulldog Spirit... I like it

Alan