Postby darthblingbling » Mon Nov 08, 2021 6:01 pm
I've read this as such:
- You took on a position as a part time cleaner, you were under the impression that this was an employed role and you would be subject to tax withholding at source.
- In reality, you've may have been engaged as self employed, so there is no obligation of the engager to withhold tax (caveat I'm just mentioning what the perceived arrangement is, not making comment as to whether this is actually a self employed engagement for tax purposes)
- Although they were not obliged to withhold tax, you have asked them to withhold 20% tax, to which they have now paid you for 2020/21
If you have not received any payslips or such, likely the engager is treating this as self employment. Assuming they are right about this (they can't pick and choose whether someone is employed or self employed, must be based on the facts) then you will need to settle the taxes yourself.
I'd get to the bottom of this first and just ask them if this income had been reported through a payroll, ask for a p60 if it has. Was a payment given for 2019/20? What happened to the withheld taxes for that tax year?
Given you were only earning £50 a week from Nov 2019 onwards I think you still have ample time to put things right given you may have access to the £1,000 trading allowance, which in turn may have relaxed the reporting requirement for 2019/20. But this may not be the case for 2020/21 and you may need to register for self assessment as soon as possible.