The consultant is known to us socially. She said she would be happy to sort out her own tax. We left it at that. It was only when I heard she was also claiming benefits I realised she was probably not declaring her income. That's when I put her on the payroll and gave her a new job within the company.
Yes she has been taxed at source since she formally joined the company as an employee seven months ago.
She has failed in her quest here with the new job, she now has to be let go.
I am as nervous as a virgin at a prison rodeo that HMRC will come looking to us for unpaid tax.
The consultant has ample assets to pay any tax the HMRC might ask her for, if it turns out that way.
Hope all this is clear.
I hope this is helpful and answers your question.
If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.