Client unhappy

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Laura8192
Laura8192 Registered Posts: 95 Epic contributor 🐘
in General accounting discussion
What do you do when you know that the advise you are giving is correct, but your client doesn't agree?

In my current situation, I have a client paid £641 a month, however he is not the director, he is the directors spouse. I have raised a concern that they are breaking NMW legislation, and he said that it is fine as he is self employed and the driving agency pay him £10 an hour, I advised that as he receives a payslip each month and has tax deducted (tax code is not 944l) he is employed, not self employed. Also the agency pay the ltd co £10 an hour, ltd co pays employee 641 a month.....

Previous accountant seems to have classed him as a director, his wages are classed as Directors Salary in the TB.

He insists that the way they are running the company is fine, I have advised him to get some specialist employment law advice as the company cold get fined for not paying NMW.

This has all been done through email so I have proof that I have advised them correctly, but I can sense that he is really unhappy in his replies, is there anything else I could do to make the situation better?

Comments

  • T.C.
    T.C. Registered, Tutor Posts: 1,448 Beyond epic contributor 🧙‍♂️
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    Have you thought seriously about dropping this client?
  • villapb
    villapb Registered Posts: 357
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    He needs to be made a director if he wants to be paid this way, what's their problem with that..............
  • Laura8192
    Laura8192 Registered Posts: 95 Epic contributor 🐘
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    I'm not 100% but I think there is a reason he can't be director, not sure what it is though. I can't afford to drop clients at the moment as I am only just starting out, it's also a sort of family friend and I wouldn't want to cause problems that way. I will suggest he becomes a director in the company and see what they say.
  • villapb
    villapb Registered Posts: 357
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    Laura if he is getting a payslip as part of a payroll run as it will be rti so hmrc will already know, but is the payslip shown as salary with no hourly breakdown, because it can only show 16 hours if paid £10 per week. If shown as salary with no hours shown...... 25 hours worked at mnw........just be interested what they are showing on payslip as £641 is being reported. Can he be made a shareholder and is there profits available............

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