Being self employed and employed

System
System Posts: 100,537 🤖 Admin 🤖
edited June 9 in General accounting discussion
Just a quick query.

A potential new client has come to me and is currently employed but wants to go self employed - no problem.

The catch is they do not want their employer to know they potentially have a second income, for reasons not yet known (but I do intend finding out).

I know they have to declare on the CWF1 that they will be employed and the client has no problem with this. But will the revenue inform their employer they have become self employed as well or not???

Any advice greatly received

Cheers
Michelle

Comments

  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Being self employed and employed

    Hi Michelle

    I can't see that causing a problem. Your client will have their "main job" which will have his tax and ni collect through his paye code and the employer will produce the year end P60 for you to enter on his Self Assessment.

    His class 2 can be collected via his personal account.

    In fact he only time the employer would know is if your clients payable tax is £2,000 or less and they want it collect via there paye code. The could then ask questions.

    Questions I would of thought you need to ask is, as you said "why doesn't he wanting them knowing". Are they doing something on the same line of business, therefore using his employment status to potentially take away business from his employment? If this is the case I would advise them that they could be liable to prosecution for damages.

    Regards

    Dean
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Being self employed and employed

    I've got a client who doesn't want his employer knowing about his self employment because he really likes his job and is worried that if there are any redundancies where he works that if they know he's got other income they might think he can manage without his job better than someone else & make him redundant.
    I just advised him to check his contract of emplyment to make sure he wasn't obliged to tell them, but there was nothing there to say he had to.

    but I definitly agree with Dean that there could be problems if he's going into the same line of business.
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Being self employed and employed

    Thanks Guys :D

    The lines of business are completely different. The guy is an employee of a large well known insurance company and the business being set up is in web design. So I know it isn't because the lines of business are the same.
    I will find out why because if the client can't be straight with me on a relatively simple matter like this, then I would always be worried about what else is being kept from me.

    Anyways I will find out tommorrow - I am seeing the client then.
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Being self employed and employed

    I am still employed and have just gone self employed as well - when I registered, HMRC told me it is none of my employer's business as long as I am not working in direct competition. So I am assuming they don't pass the information on..
    Emma.
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Being self employed and employed

    When I worked for Her Majesty's Inspector of Taxes many many years ago, we were expressly forbidden to disclose taxpayers details to anyone, especially their employers. We had to sign the Official Secrets Act and could be liable to prosecution if we did let drop a few personal details. Times have moved on of course and now they just shoot you.
    Anne Marie
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Being self employed and employed

    Shooting would be too good for most people who work for HMRC :wink:
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Being self employed and employed
    claudialowe wrote:
    Shooting would be too good for most people who work for HMRC :wink:

    Ouch!

    :lol:

    Regards

    Dean
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Being self employed and employed

    I only said most - could have gone for all :shock:

    It is only because I spoke to 3 (yes three!) consecutive nice and helpful people on the C&E side this week, that the (small) minority got a reprieve!

    Their website (still) being down though might decrease the spared few.

    The main ones in the firing line -

    1. 64-8 staff at Longbenton
    2. The "helpful" people who sent out incorrect S/A statements.
    3. Anyone involved with the government gateway.

    Anyone else got anyone else to add????? :)

    Claudia

  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Being self employed and employed

    Good news - my client isn't up to anything sinister and not a member of the mafia or anything like that!!

    The reason was that the company he works for is going to be asking for voluntary redundancies later this year and as no-one wants to go they are considering making people redundant anyway. He is thinking that if they find out he has another income they may decide to make him redundant. He does eventually want to leave but only when his business is able to offer more stability as he also has a young family, mortgage etc.

    As for people who need shooting or at the very least examining to see if there is something between their ears are the nice people who have lost my 64-8's(7 in total to date) at Coventry & Warwickshire office and the nice person at Shropshire office who appear to have lost the plot as well as my clients £7k refund :evil:

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