Is this legal?

[qwe63]

hi guys, just wondering if you ould help me with my situation. in may i was made redundant, i had been working for almost six years (4 yrs as a apprentice 2 yrs qualified). i have been on the 'dole' for 3 months looking for work and i had no luck with applying for any jobs.

This week someone has reccomended me to a group of lads (3) to join there team doing price work, the contract sounds really good its four years work and the money looks great although i'm unsure of many details as i'm new to all this.

we will be working with a big electrical company but will be self employed not cards in. The other lads have been with them for 2.5 years already working like this.. Apparently when we get paid it will be paid into one of the lads bank accounts and he will split it between us, apparently the tax will have already been taken out by the electrical firm before going into the first bank account and i will only have to pay national insurance. 2nd they said they havnt recieved a pay slip in the 2.5 yrs they have been there, should i expect a payslip even though i'm self employed and not working for the company. should i have a contract of employment from somewere, i spoke to the contrcts manager the other day and he said its not really there issue as he isnt employing me it's the guy who asked me to work with him in the team, he's just an electrician and proably isnt going to sit at home and type me up a contract?!

i'm used to working for a very well run company cards in and dont have to worry about too much, some of this seems a little worrying and i'm going to have to trust people about money ( no contract and trust he's going to put money into my account everywk) do other people work like this and is it legal.. sorry for the long winded post could someone help? thanks guys..

 

[leekemp85]

I have a contract with a electrical company I use two of my mates that are self employed with UTR and CIS. I get all the money and am taxed on it then pass it on to the others. I have to fill in a tax return each month for the other two lads and they get a bill every few months for there NIC. I just make a £1.50 PH for the two mates. Its not really worth all the hassle. I do send remittance advice slips to them once a month for there work.

 

[Modernelectric]

they should get confirmation that the tax has been paid on there behalf.

 

[qwe63]

yeah i will need some proof it's been paid, i thought this was one of the reasons we are given pay slips? how would they prove that they have been paying it, am i entitled by law to see something?

 

[Modernelectric]

the guy who is paying your wage into your bank should also be making your tax contributions for you and you should get a slip every month confirming how much has been paid and how much you have earnt.

I dont know about legal entitlement to this but if you dont see this then the chances are no tax has been paid on your behalf and you will be left with a hefty tax bill at the end of the year.

 

[ian.settle1]

Sounds a bit Del-Boy Trotter set up to me.

No payslips, no record of tax paid etc, tax man would have a field day if he came knocking on your door you owe us x amount of back tax but I have paid it where is the proof they will say.

 

[qwe63]

yep thats how it feels 'bit dodgy'.. i prob wouldnt even bother but theres no work anywere else. thats why i was asking is the firm supposed to give me a payslip even though i'm self employed? is he just turning his back and ignoring this as its hassle for him. i need to ask the other lads why they arn't botherd about it they must be worried about the tax man knocking..

 

[Modernelectric]

ive sub contracted for many years and have always recieved direct payment and a paye slip.

 

[qwe63]

slightly off topic but why doesnt he just employ us direct, what difference does it make? thanks for your help.

 

[Modernelectric]

it cuts down on paperwork. if anything the employer should pay the guy and not deduct anything for tax and then the guy paying you should make all the relevent tax contributions and this way would be the most legitimate. I may be wrong because if the employer has your UTR then he can make the contributions for you but if not then you will possibly be getting screwed?!

If he was employing you he would have to give you holiday pay, breaks throughout the day, cover your expenses and be able to provide enough work for you, whereas if he uses sub contractors he can drop you whever he likes.

 

[qwe63]

yeah its best for him suppose he can just bin us when the work drys up, your exactly right what your saying there.

i think i'm in a bit of a mess here, dont think these fellas are going to like it when i start asking to do it this or that way and i want to see tax documents, but at the end of the day it will be better than getting screwed over i suppose.

no i havnt given any tax details to him yet, so would that mean he wouldn't be able to deduct any tax?

 

[Modernelectric]

Look at this website and particularly the section about a nominee being paid on your behalf (which i have added to this post). Dont worry yourself to death over this!

HM Revenue & Customs: Getting paid and paying tax - advice for subcontractors

Nominating someone else to receive payment

If you choose someone else to receive payments on your behalf - like a gang member, workmate, relative or debt factor - they should also register with HMRC. This person is called your 'nominee'. If you're registered to be paid gross, the contractor will pay your nominee gross as long as the nominee is registered for gross. But if they're not, they'll be paid under deduction - even if you're registered to be paid gross.

 

[qwe63]

yep thats how there doing i suppose the 'nominee' route. i'm just making national insurance contributions. just some sort of proof that the tax has been paid would be nice

 

[iceman]

sounds very suspect to me mate i worked last year doin price work never again, there was ment to be three lads on the job with three days to complete the first there was two lads the other lad never even bothered to turn up the second day two lads the last day i was there by my self the job never got completed and i never got paid what a complete con it was, as for the guy thats getting the money paid into his account if i was you id steer well clear, sounds very dodge indeed good luck mate what ever you decide to do, what ever it is do not take part in price work!

 

[qwe63]

sorry to hear about your bad experience. they are friends of one of my best mates so i'm hoping there will be no problems with trusting them with money. where money is involved who knows what will happen though. i think i'll give it a week or 2 nag them about seeing some sort of pay slip or something to do with tax. if nothing can be shown i'll quit go back on the ' rock n roll' and look for something cards in or go back to college.

 

[andekoch]

get something in writing saying how much you get, who pays what and you should be ok. payslips are not strictly required if I remember right (although I have always provided them) but a P60 at the end of the tax year or when you leave is a legal requirement and this will clearly state how mych you got, how much tax and NI was paid (both employers and employees NI). If you are paying NI you will need to pay both employers and employees NI (if you are a company) or else it is a fixed rate and an adjustment is made (i think) once your end of year tax return is submitted. Yes you will need to submit a tax return since you are not strictly on PAYE.