Self-assessment Tax Mess - member of the family
Discussion
I'll try to be brief as this isn't something I fully understand myself yet!
- Member of the family was on JSA until November 2016
- started working as a part time labourer for a local landscaping / building company
- said company did not want to directly employ due to tax, insurance and pension issues (alarm bells for any sane person)
- "Thought" he registered as Self-employed in November last year - but received no correspondence (therefore no UTC)
- now (as in today) he is concerned about having to complete a tax return
Company pays relative just £60 a day. No paperwork has ever exchanged hands, money is just paid directly into relatives bank account. The only physical record which exists is a notebook where relative has acknowledged when he worked.
To my limited understanding of this situation it almost seems as though our relative has wound up in an illegal cash in hand job with the only difference being no physical cash.
I've looked up said "company" and there is nothing more than a Facebook page, no company website etc. The proprietor has previously been a director but is no longer listed as such for any company. Basically it doesn't seem to exist!
I'm worried said relative is being taken advantage of (not least due to the minimum wage elephant in the room) but he is worrying himself silly about the tax situation. In all fairness, at this level of pay he isn't likely to incur any income tax, legally employed or not, but he does fear for the security of his legitimately accrued pensions from previous employers and what this might mean for the future.
Just a couple of details to quash the inevitable How/What/Why's this will attract -
Said relative is severely dyslexic
Relative is nearly 60 years old with no formal qualifications - it is very difficult for him to find much in the way of work at all
Any assistance on where we go from here /what we do with the tax situation and this "company" he is not actively employed by would be very much appreciated.
- Member of the family was on JSA until November 2016
- started working as a part time labourer for a local landscaping / building company
- said company did not want to directly employ due to tax, insurance and pension issues (alarm bells for any sane person)
- "Thought" he registered as Self-employed in November last year - but received no correspondence (therefore no UTC)
- now (as in today) he is concerned about having to complete a tax return
Company pays relative just £60 a day. No paperwork has ever exchanged hands, money is just paid directly into relatives bank account. The only physical record which exists is a notebook where relative has acknowledged when he worked.
To my limited understanding of this situation it almost seems as though our relative has wound up in an illegal cash in hand job with the only difference being no physical cash.
I've looked up said "company" and there is nothing more than a Facebook page, no company website etc. The proprietor has previously been a director but is no longer listed as such for any company. Basically it doesn't seem to exist!
I'm worried said relative is being taken advantage of (not least due to the minimum wage elephant in the room) but he is worrying himself silly about the tax situation. In all fairness, at this level of pay he isn't likely to incur any income tax, legally employed or not, but he does fear for the security of his legitimately accrued pensions from previous employers and what this might mean for the future.
Just a couple of details to quash the inevitable How/What/Why's this will attract -
Said relative is severely dyslexic
Relative is nearly 60 years old with no formal qualifications - it is very difficult for him to find much in the way of work at all
Any assistance on where we go from here /what we do with the tax situation and this "company" he is not actively employed by would be very much appreciated.
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