Okay, so my wife has been working at a hair salon for the last 17 months where she has been an employee, getting her wages every month with Tax and NI taken off and paid by employer. Just this morning she has had a text from her boss to say that she can't afford to keep paying my wife's NI and tax (do employers pay a tax contribution?) because of new pension guidelines. Instead she wants her to be self employed by another member of staff. She also mentioned showing her her to stay under the minimum levels like another employee, to avoid paying NI/Tax!? I think another employee takes anything over the threshold as cash from the till.
Anyway, I just wanted some advice on what she should do next. She enjoys the job but neither of us feel comfortable trying to dodge the system, so will be declaring everything she gets paid. We have never been self employed, so I was wondering where she should start with sorting her NI and tax out ourselves and how much we need to put aside and when do we pay etc..
She gets between £800-£900 a month after tax and NI, depending on how many days she works. She works Wed, Fri and Sat and is paid at an hourly rate, so obviously some months there are more of those days in the month than others, which is why it varies.
Can an employer just decide to no longer pay NI and tax and make someone self employed? I don't really have a problem sorting it all out, once I know how, but I'm a little worried by the 'taking cash from the till' to stay under thresholds' comment and hope she doesn't insist on this.
My wife has never had a contract, but has worked the same days for almost 18 months now. Any help, advice, pointers in the right direction would be very much appreciated. Thank you!
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