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Sam
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Category: Tax
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I was asked to work as a consultant to a charity as a self

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I was asked to work as a consultant to a charity as a self employed person however the job prevented me from finding work else where. I have completed an ESI from HMRC and it came out as my being employed. The Trustees asked me to sign a form indicating I would pay all my tax. I have refused to sign? Am I self employed or an employee
Submitted: 2 years ago.
Category: Tax
Expert:  Sam replied 2 years ago.

Hi

Thanks for your question - I am Sam and I am one of the UK tax experts.

At face value I would agree you are an employee, but may I ask what duties you performed/continue to perform for this charity.

Thanks

Sam

Customer: replied 2 years ago.

I was the CEO of the charity.

Strategic planning and development. Business planning, marketing, basically the job was much bigger than I had been led to believe. Eventually I was taken on PAYE and then 18months later I was diagnosed with cancer. They are now trying to make me redundant so I have resigned. Unable to take the trustees for unfair constructive dismissal as they say i have not got enough employment time with them

I informed HMRC that my cancer treatment meant I was unable to complete my self assessment and paid the fines until I was able to complete.(Their advice) Now I find myself in this position after some shocking treatment from the Trustees and wondering if I should complete my late self assessment as employee or self employed

Expert:  Sam replied 2 years ago.

Hi

Thanks for your response and I am sorry to hear of your halth worries - and can only imagine what a diffcult time this has been.

Can you clarify matters for me - as you advsie that you were taken on as self employed but then advise you were eventually taken on as PAYE, could you advise

1) What date you were taken on as PAYE

2) What tax year you are to submit self assessment for

3) How many years have you led HMRC to believe that you were self employed and have completed self assessment as a self employed individual

Thanks

Sam

Customer: replied 2 years ago.

I was taken on as PAYE in September 2013.

Started self employment September 2012

Diagnosed with cancer Jan 2014 when I was due to complete 2012/2013 Tax year.

I was self employed 2007 - 2010 completed self assessment and then was employed up to July 2012 took one month off and then took on the CEO role

Expert:  Sam replied 2 years ago.

Hi

Thanks for your response and the additional information

And which tax year do you need to complete self assessment for - is this for 2013/2014? Which wa due 31/01/2015 at the latest (so is late)

And if its for that year - then are you concerned about the tax from the period April 2013 to Aug 2013 (as you then were PAYE with this charity since Sept 2013)

Under what condistions did the trust agree to change your position of self employmnet to employment and did your duties change or the way in which you performed the duties for them from Aug 2013 to being PAYE from Sept 2013

Thanks

Sam

Customer: replied 2 years ago.

Sorry for all the confusion.

I was employed (PAYE ) 2010-July 2012

Started CEO Consultancy role September 2012 - 2013 so need to pay some tax as either self employed or PAYE for work done for the charity. (I have not completed this self assessment but have paid £900 fine)for work upto Jan 31st 2014. Have not been given self assessment for 13/14 but have also paid £100 fine today for this. Things are in such a mess

Expert:  Sam replied 2 years ago.

Hi

I am getting very confused about this -

I do not need any information to prior to your being engaged by this charity as a CEO -

So can you clarify that you were taken on in a self employed capacity - from Sept 2012 and you have not completed self assesment for 2012/2013 or 2013/2014, although since Sept 2013 the charity agreed to take you on as an employee

I understand you are questioning how you should complete the tax returns (whether employed or self employed) and I assume you have

1) Details of your income from 06/04/2012 to July 2012 (a P45 from employment) and have then kept records of the income you earned as a CEO from Sept 2012 to 05/04/2013

2) Have details of income from 6/04/2013 to Aug 2013 (as self employed CEO) and then have a P60 from the charity to cover the period SEpt 2013 to 05/04/2014

IS this right ? I can then advsie further and how to proceed in asking HMRC to consider employment throughout this period of engagement

But I also need to know what made the cahrity agree to take you on under PAYE from Sept 2013 - what had changed with your job role or the duties you provided or the way in which you provided these duties

Thanks

Sam

Customer: replied 2 years ago.

I have all my details of payment from the charity since September 2012 - September 2013. and then pay slips from then onwards.

Nothing changed in terms of the things I had to do for the charity and my contract in terms of content, remained the same.

the charity were more than happy with the work i was doing and so decided to offer me a job as an employee

Expert:  Sam replied 2 years ago.

Hi

Thanks -

Then you must complete thes elf assessment as self employed until Sept 2013 and then as employment from Sept 2013 -

Once you have the tax returns into HMRC then write to HMRC making reference to the tax returns challenging the fact that the charity took you on in a self emplyed capacity which you feel is wrong (and this is further supported by the fact you have since Sept 2013 been taken on under PAYE as an employee

Ask HMRC to challenge the charity on your behalf, and explain that you would take this up initially yourself but due to your ill health and their subsequent treatment of you - do not feel able to manage this directly -

Also in your letter empahise again the reason for the dely in completing the tax returns and advsie that you have paid all the fines - which you on hindsight do not feel shoud have arisen, as you should not have needed to be in self assessment if you should in fact have been an employee.

Take a screen print of the ESI tool view of your employment status and also enclose this - and advsie HMRC you are willing to assist them with this matter in any way you can.

I also would advsie you that you consult with an employment lawyer (initally consult ACAS who offer free advise) - link here for ACAS http://www.acas.org.uk/index.aspx?articleid=1410

as you also should consider what might be owed with holiday pay, sick pay etc as I do believe that with the type of work you were engaged to do for this charity there is no doubt you were and should have been an employee from the start as you have o change of duties and were working for the charity and not yourself.

Let me know if I can be of any further assistance

Thanks

Sam

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Customer: replied 2 years ago.

Thank you so much Sam. This is music to my ears you have been fantastic.

Best wishes

Bronia

Expert:  Sam replied 2 years ago.

Hi Dronia

You are very welcome and all the best with your health - I can only imagine what a tough time it has been for you.

Do let me know if I can assist any further but if you could take the time out to rate (or accept) my answer, it would be much appreciated as this ensures that Just Answer credit me for my time.

Thanks

Sam

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