What would the ICB's ethical advice be to a member who was asked to work for a client who declined to treat any labour other than as self-employed, even though the HMRC tests would show they were employees?Edited at 01 May 2011 02:28 AM GMT
My opinion would be that this is a money laundering and/or tax evasion issue and you should make an appropriate report in accordance with Money Laundering regulations.You do not need to have carried out any work and MLRs are suspicion and not fact based.Also remember that you are under an obligation not to inform the client/prospective client if you make a report. If you do tell them then that is tipping off and you could face criminal sanctions.
> > Hi all In the first instance I would point the client in the direction of the Hmrc guidelines and make them aware that they a breaching Hmrc rules and will be liable for back taxes and NI as well as penalties and interest.If the clients response is lack lustre and they show they are aware they are breaking law then walk away and fill in the relevant mlr forms to cover your own back. Remember as Geoff said do not tell them you are reporting them.There are certain dispensations which may mean he can work this way hence why I would point it out first. Cheers Stuart > >
