Advice on British tax laws

mr-razzcocks

Right, at the beginning of the year I started a new job, but instead of being employed by the company, I'm paid as a private contractor, and I have to sort out payment of my own tax and insurance. The company has around 80 people working for them in this manner.

Now, I've only just got to a point where I'm about to declare myself self employed, and part of the process is telling the tax people the name of the company I'm contracting for. I found out today that a lot of the people I work with don't bother paying their tax and insurance, and quite a few of them are scamming it a little, eg. claiming benefit on the side, or working while receiving sick pay from another company. A lot of them are very sound guys, and I don't want them to get in shit over me actually paying my tax and insurance.

What I want to know is, how likely is it that the taxman is going to get in touch with the company I'm working for, and how likely is it that they'll want to know if the company is paying more than just me as private contracters?

cmsamo

First off - what those other guys are doing is a crime, and has serious consequences, but you know that.

If you do the same as your co-workers, you also are committing a crime. Therefore, the only advice it's possible to give in this forum is pay your taxes and insurance. Don't be concerned with what happens to other people - they all know what they are doing, and should know the consequences involve hefty fines and probably jail time in severe cases.

To answer your original questions - I'm not sure of the answers but when my friend was contracting, the company did get contacted by the Inland Revenue. about him - his hours of work and what he earned. I don't think they'd enquire about any other people that work there though...

corcorigan

Pay taxes. Consequences of intentionally not paying up are unpleasant at the best.

And screw everyone else. They know the risks. You play with fire, you risk getting burned.

FreakNRage

Pay it. Not paying your taxes is like playing russian roulette. Yeah you may win for awhile but eventually you're going to screw yourself. Even if it had the potential to screw your co-workers thats their problem, you shouldn't be considering committing a crime just to help them out because if you get caught your government won't care. You will be fined and possibly do jail time.

mr-razzcocks

Ok, taken on board.

Just to clarify, I've already made my mind up about paying my taxes anyway, I'm just a little worried about the rest of them.

I guess you're right about them making their own choice, though.

Mr_Grinch

Ahem.

I work for the Inland Revenue, in fact I work on the side that actively looks for people not declaring tax/enough tax (in fact I'm at work now!). Coincidence eh?

I can tell you that what you plan to do is indeed the best course of action and you won't get anyone else in to trouble.

To be honest, with self assessment, an awful lot of it is done on a trust basis. If we suspect there's something wrong with a return (something stands out, a high figure, something doesn't add up) we can investigate in to it anywhere up to a year after the original filing date.

But yeah, don't worry about the others, you won't be getting them in to trouble and you will be saving yourself an awful lot of hassle in the long run.