My nephew, aged 23, has been having a hard time trying to get himself a steady job and instead has been doing 3 small jobs (cleaning, part time waiter) which equalled to not much more than 2 days work a week.
Back in April he got a knock on the door from a family acquaintance who runs a small landscaping business who offered my nephew work for 5 days a week, until minimally end of August at a rate of pay of £60.00 per day. This family acquaintance advised my nephew that he would need to register as self employed and invoice him each month and he would pay him by cheque. All has gone well, paid promptly etc. in the meantime our acquaintance advised that as his workload was increasing he would almost certainly keep my nephew on until the end of year and probably beyond. My nephew quit his other small jobs and registered as self employed.
All going well until last week the inland revenue contacted my nephew and asked for further details regarding his employment status. They advised that he was essentially an employee rather than self employed (as he has no other sources of income) and that his employer was simply trying to avoid paying my nephews tax/NI etc. they also went on to advise that as an employee he would have basic employment rights etc and should pursue this. In the mean time our mutual acquaintance has been cutting my nephews days and now stating that he probably won't have any work left for him come August.
It all sounds very messy to me and I'm not sure what to advise? Anyone have any ideas what the bloody hell is/should be going on?