Casual Staff

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Rachel
Rachel Registered Posts: 348 Dedicated contributor 🦉
Hello

I have a client who provides security and employes casual staff.

She has provided me with this years bookkeeping and it is mainly sales and expenses.

One thing I feel uncomfortable with is paying casual staff. Is it my responsbility to ensure that they all declare it on their self assessments? I am unsure what agreement my client has with the casuals but I thought I would ask on here if anyone had experience of this and processes needed. Also, as I am just preparing the CT600 I have only been provided with lump sums of these payments so no back up and I suspect that they have been paid in cash as there isn't a company bank account.

I always add a disclaimer i.e based on the information you have provided please find attached Accounts etc but feel uneasy and need advise on what I should be asking for/doing. Usually my clients are more straight forward and everything is itemised.

Sorry for the waffle

Comments

  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
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    Make sure you advise her in writing of her obligations as an employer, or how to ensure they are genuinely self employed.

    If you have a reasonable suspicion that any of these people are being paid cash in hand (ie potential tax evasion) then your obligations under the AML rules may mean you have to make a report to SOCA.

    If the client says they are all legitimate and they have done things properly, there is no reason not to put them through. I would always ensure you have advised fully in writing, then there can be no comeback to you if HMRC enquire and open a can of worms - but in an ideal world the client is either doing it properly, or they are willing to let you advise, and then help them to get it right. The potential penalties are high,so it is definitely in their best interests to get it right!

    In answer to your specific questions, it's not your responsibility to make sure the casuals declare any tax - that is their responsibility.

    If an employment status test says they are employed, then P46 procedures need to be run no matter how much is paid, as if it's a second job, youd have to deduct tax at BR.
  • zara5034
    zara5034 Registered Posts: 170 Dedicated contributor 🦉
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    Some people get confused and think that it is perfectly fine to employ casuals, for example someone who only does 1 or 2 hours a week, and pay them gross, however as Monsoon points out, if they have other employment, then OT (previously BR) needs operating meaning that they need processing via the payroll.

    I always advise Clients to put all Staff through the payroll, no mater how little they are paid.

    One thing that does concern me though, and I wonder if anyone can advise. What is the best procedure to adopt if you look through the accounts and discover that the business has used casual labour over the year, maybe paying someone £20 for a couple of hours work here and there. When questioned, the answer that it was someones brothers/girlfriends son and they have no idea where they are now and couldn't give you any further information.




    QUOTE=Monsoon;227752]Make sure you advise her in writing of her obligations as an employer, or how to ensure they are genuinely self employed.

    If you have a reasonable suspicion that any of these people are being paid cash in hand (ie potential tax evasion) then your obligations under the AML rules may mean you have to make a report to SOCA.

    If the client says they are all legitimate and they have done things properly, there is no reason not to put them through. I would always ensure you have advised fully in writing, then there can be no comeback to you if HMRC enquire and open a can of worms - but in an ideal world the client is either doing it properly, or they are willing to let you advise, and then help them to get it right. The potential penalties are high,so it is definitely in their best interests to get it right!

    In answer to your specific questions, it's not your responsibility to make sure the casuals declare any tax - that is their responsibility.

    If an employment status test says they are employed, then P46 procedures need to be run no matter how much is paid, as if it's a second job, youd have to deduct tax at BR.[/QUOTE]
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