Looks like an employee, should be an employee

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Poodle
Poodle Registered Posts: 711 Epic contributor 🐘
in General accounting discussion
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!!

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  • K H
    K H Registered Posts: 81 Regular contributor ⭐
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    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
  • Poodle
    Poodle Registered Posts: 711 Epic contributor 🐘
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    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 :(
  • deanshepherd
    deanshepherd Registered Posts: 1,809 Beyond epic contributor 🧙‍♂️
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    I'd be happy to wave goodbye to any CIS job!
  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
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    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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