OP
Deleted member 26818
Not sure whether you have missed the point or not?He worked there for nearly six years, was VAT registered and used his self employed status to right off a room at his house. I believe both parties new exactly what they were up to.
However you have chosen two points as proof he was benefiting from being Self Employed which prove nothing at all.
His six figure earnings were such that he would have breached the threshold for compulsory VAT registration.
Yes he used his Self Employed status to claim for a room in his house. He was unable to use his PAYE status to claim, as he was Self Employed.
Of course he may not have legitimately been able to use his PAYE status to claim for the room as he would not have been Self Employed or VAT registered and may have not needed to use a room for his accounting.
You may have had a valid point if you had cited that he employed his wife as a secretary, except that again being PAYE he may not have needed to do any accounting from home and would not have needed a secretary.