Reporting employer for fraud

[bertiebanana]

I have been working for a small business on a self employed basis for some time now. It is a job where I should be employed (i.e. similar to shop worker) but the boss will not consider it as the set up suits his needs (i.e. shifts are confirmed late, doesn't have to pay invoice on set date, blah, blah, blah).

He has three permanent members of staff who are part-time. The rest of us are self employed. During lockdown this arrangement worked perfectly for him as all of us were immediately chopped except the three permanent staff who were furloughed. After a brief period of no trading, he restarted and I have a strong suspicion that one of the permanent employees was actually working during this period despite being furloughed.

I don't actually need this work as I have other income and although I am paid very slightly more to be freelance the difference is not sufficient to cover the lack of benefits, pension, etc. that a permanent job would give me.

I am getting increasingly annoyed with his 'couldn't give a shit' attitude which is geared to making him as much money with little regard for anyone else. I have been considering reporting him to HMRC for fraud but, despite being registered as self employed, submitting a self assessment each year and paying tax and NI, I am worried about it coming back to bite me on the bum!

Does anyone know how it would work? I don't want a big investigation into my own financial affairs (although I suspect they wouldn't find anything of interest if they did!).

What would you do?

There is an online questionnaire on gov.uk which is designed to check if you are truly SE or should be classed as an employee in the eyes of the law.

Would be worth completing.

If you report him, as you are completely justified to do, and you are right you and your co workers could loose your jobs. Do you know he is claiming furlough for working staff, or is it an assumption? Tread carefully, ordinarily I would say report, report, report, but under the circumstances you might be able to afford not to work, but can your co workers?

@BernadetteRostankowskiWolowitz - I've completed that form, and yes, we should be employed. I have only realised it myself and have pointed it out but he has poo poohed it as it saves him a shed load of money.

@Alexandernevermind - I wouldn't report the suspected furlough situation because I don't have evidence/could be wrong. Only one of the freelancers has a couple of days guaranteed each week. The rest of us are 'as needed' but there is sufficient work that there are quite a few freelancers each week. We all have other work so could afford to lose income. None of us had any work during lockdown.

My point is that he is getting away with not paying employer's tax and NI, pension, etc. as we should all be PAYE even though our hours fluctuate.

I think you should report.

He won't know who did the report. He might have a suspicion. But won't actually know.

@Happyheartlovelife - Will they investigate me as well? I've declared all my income and paid tax and NI but have lots of other things going on at the moment and not sure I could cope with any extra stress. I would have to include my contact details and relationship to him.

It is an employers responsibility to make sure your employment status is correct. If its found that you should be employed, rather than self employed, the penalties are only levied to the employer. You won't be in trouble. As part of my CPD as an accountant this was made clear during a HMRC webinar a couple of years back.