Looks like an employee, should be an employee

PoodlePoodle Experienced MentorPosts: 711Registered
Hi,

Thought that I was helping a new client.

All income is being generated by income from one source a building contractor with CIS deduction.

I suggested in a covering letter with my letter of engagement that he appeared to be an employee of that company and if ever the company suffered an investigation from HMR&C he might well be re classified as an employee.

He took my letter to his boss who has now offered to pay for his own accountant to do his SA and he will pay his £100 fine!!

Comments

  • K HK H Feels At Home Posts: 81Registered
    Perhaps telling him that the problem wouldn't be his ,but his employers' might have helped, and any Accountant worth his salt should have done what you did.

    i have done this myself a few times,but always pointed out that the onus is with the Contractor not them.

    when HMRC eventually catch up with the Contractor they will have problems.



    K H
  • PoodlePoodle Experienced Mentor Posts: 711Registered
    K H wrote: »
    Perhaps telling him that the problem wouldn't be his ,but his employers' might have helped, and any Accountant worth his salt should have done what you did.

    I did just that, it just makes me cross :(
  • deanshepherddeanshepherd Font Of All Knowledge Posts: 1,809Registered
    I'd be happy to wave goodbye to any CIS job!
  • MonsoonMonsoon Font Of All Knowledge Posts: 4,071FMAAT, AAT Licensed Accountant
    I know it's frustrating but you don't need clients like that! You did the right thing. You'd have been wrong to not point it out.

    We had someone leave us (also a contractor) recently because his friend's accountant could guarantee to save him tax. We have been scratching our heads as we have no idea how on earth they are going to do it, we have provided for everything we can possibly think of . We are happy to be proved wrong but think the only way he could get his tax down further was dishonesty (or something very obscure).

    There are plenty more fish in the sea!
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