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to think they should've said pay was into Paypal account only

37 replies

cheapskatemum · 18/10/2014 18:44

I have started a new, part-time job and all is going well, except that, when I asked about when I was going to get paid, the company said it goes into your Paypal account. Both DH and I loathe Paypal, after several bad experiences involving it, so no longer had Paypal accounts. I feel they should have made it explicit from the outset that this was how payment was made. I wouldn't have thought to ask as I have never heard of anyone being paid in this way.

OP posts:
OraProNobis · 19/10/2014 11:08

Withdrawal to a bank account costs nothing. I know this because I do it regularly so your information sooper is incorrect.

PhaedraIsMyName · 19/10/2014 11:12

I love the way you put it, yes, they are pretending I'm self employed. I don't have a problem with that, it's extremely unlikely I'll earn enough to pay tax

The fact you don't have a problem is completely irrelevant so far as HMRC is concerned. If you are an employee both you and the employer is committing fraud by pretending you are self-employed.

Slutbucket · 19/10/2014 11:15

You still need to do.a.tax return.

Chrissy41 · 19/10/2014 11:31

I would be very concerned the company set up the paypal account on your behalf - you need to change the password on your paypal account immediately - or they will also have control over your paypal account.

TheMagicChicken · 19/10/2014 11:36

My son has regularly been paid via paypal, for the past 4 year, for all his internet dabbling. Never had a problem.

Chrissy41 · 19/10/2014 12:03

yes but the OP didn't set up the paypal herself - and what about fees and tax returns and chargebacks?

PhaedraIsMyName · 19/10/2014 12:10

My son has regularly been paid via paypal, for the past 4 year, for all his internet dabbling. Never had a problem

That's not really the point. Your son is trading via the Internet, his choice; not being paid his wages that way.
There seems to be no point to this other than tax evasion.

Lioness82 · 19/10/2014 13:12

If you're self employed you also need to pay Class 2 National Insurance - regardless of how much you earn (around £2.85 a week, I think. Most people pay quarterly) and Class 4 national insurance which is a percentage of your earnings.

You also need to complete a tax return, even if it is to declare below threshold earnings or no earnings. If you don't there are fines, penalties, daily charges and possibly estimates (called determinations) that are binding and payment can be enforced by courts.

I'd be looking for other similar work, you can enjoy without the potential debts and fines this could wrack up.

justmyview · 19/10/2014 13:25

Perhaps legally, you are self-employed, ie it's not just the company "pretending"

TheSecretCervix · 19/10/2014 13:37

OP have you registered as self-employed with HMRC also is this your only job? If so you can't be self employed as it breaks HMRC rules.

Also wondered is the company based abroad? Are they trying to hide money/avoid tax by not having money on UK soil?

TheSecretCervix · 19/10/2014 13:42

This is the HMRC test for being self-employed:

If the answer is 'Yes' to all of the following questions, it will usually mean that the worker is self-employed:

Can they hire someone to do the work or engage helpers at their own expense?
Do they risk their own money?
Do they provide the main items of equipment they need to do their job, not just the small tools that many employees provide for themselves?
Do they agree to do a job for a fixed price regardless of how long the job may take?
Can they decide what work to do, how and when to do the work and where to provide the services?
Do they regularly work for a number of different people?
Do they have to correct unsatisfactory work in their own time and at their own expense?

And for being PAYE:
As a general guide as to whether a worker is an employee or self-employed; if the answer is 'Yes' to all of the following questions, then the worker is probably an employee:

Do they have to do the work themselves?
Can someone tell them at any time what to do, where to carry out the work or when and how to do it?
Can they work a set amount of hours?
Can someone move them from task to task?
Are they paid by the hour, week, or month?
Can they get overtime pay or bonus payment?

TalkinPeace · 20/10/2014 12:33

Lioness there is a small earnings exemption for Class 2 NI

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