self employed or employed - do i have to pay theie tax

[benmore]

i own a small hotel turnover of approx 250-300k per annum, recently had a tax audit.

As most of my staff are seasonal i decided to pay them via an invoice, they basically give me an invoice each week and i pay them in full, the tax man has said this is illegal and i should pay their tax and ni. I have agreed with this and paid him the balance and fine.

however there is one member of staff that had been employed by me for 2 years for 9 months of each year, at the time of the inspection she was speaking to her accountant about her tax issues, she is currently in the process of paying her first payment, however the taxman is saying I still need to pay this.

can anybody give me any advice on wheather I do or I dont have to settle her tax/ni as I believe it is already being dealt with.

many thanks

[section 44]

Yes, as an employer you have to properly deal with PAYE and NIC for employees.

[wamstax]

If however the self employed employee has paid tax to HMRC you could ask for credit to be allowed in arriving at your settlement

[benmore]

hi thanks for the response, to be honest i think she got wind that i had been fined and decided to speak to an accoutant, i had always told her to pay her taxes.

if lets say she hasnt paid any tax and i pay her tax, would it mean that if she paid any additional i would get the refund or would the taxman attempt to keep it.

[wamstax]

You need to ensure that your bill is kept to the minimum. If for some reason you overpay tax she would not be entitled to a refund as she never paid any in the first place