Tiggy_dorset
It looks just like a bought one!
- Messages
- 1,970
- Location
- Weymouth, Dorset, UK
Ok here is the scenario:
A self-employed person often works for a client at the clients premises. The client is simply invoiced for the number of hours worked. All invoices are legit and count towards the end of year self-assessment form on which all profits and expenses are worked out and the tax is paid.
Now the self-employed person requires extra help on one particular occasion and gets in a helper to work with him. They both work for 8 hours totalling 16 hours for that day of which the sum total of 16 hours is charged on the invoice to the customer. The self-employed person then pays the helper the agreed wage, from his pocket.
In theory, is the cash paid to the worker legal, considering it is still being taxed upon as it is still counted on the self-assessment form, and not recorded as an outgoing expense? so in theory the self-employed person is paying the tax for his worker?
A self-employed person often works for a client at the clients premises. The client is simply invoiced for the number of hours worked. All invoices are legit and count towards the end of year self-assessment form on which all profits and expenses are worked out and the tax is paid.
Now the self-employed person requires extra help on one particular occasion and gets in a helper to work with him. They both work for 8 hours totalling 16 hours for that day of which the sum total of 16 hours is charged on the invoice to the customer. The self-employed person then pays the helper the agreed wage, from his pocket.
In theory, is the cash paid to the worker legal, considering it is still being taxed upon as it is still counted on the self-assessment form, and not recorded as an outgoing expense? so in theory the self-employed person is paying the tax for his worker?