Uk tax question-p45?

IF you had worked for some dodgy employment agency in the tax year 05-06, and they ran a scheme where you were classed as a share holder of the company, and had to claim expenses in order to get paid, and they never sent you a p45 (unless i have misplaced it), would you tell the tax office when you come to do your return? Or just leave it off and hope no one notices?

always best to declare everything. speak to the inland revenue for advice.

if you worked for an employment agency then you were employed and should have been paying tax under the pay as you earn scheme. thats tax deducted from your earnings. if they have not been deducting national insurance and tax they and you are breaking the law. if this is the case and you do a tax return you will have to pay the tax and the class 2 national insurance contributions. if you leave it off and your earnings are not average and you have not been claiming benefits the return will be questioned by the inland revenue and investigated.

You must declare all taxable income you receive on your return even if you have already paid PAYE tax on it.

Contact the 'dodgy' employment agency to ask them if they will provide you with the information from the P45 to enable you to complete the employment pages of your 05/06 return.

If you are unable to do this before 31 January you can include estimates (provisional figures) on your return and provide the reason why in the white notes space. You must then provide the information to HMRC as soon as you receive the information.

I would recommend that you provide information about the 'scheme' in the white notes space. If you omit to declare income, even income that you have already paid PAYE on, you are not completing an accurate return to the best of your knowledge.

Don't forget that the employment agency will have reported your employment to HMRC since they have to give details of Tax and NI they have deducted from your pay.

Since HMRC already know about your emplyment via your employer, you're going to be on very sticky grounds if you fail to decalre it on your tax return.

Sounds like you were in some kind of Managed Service Company arrangement or Composite - you're well of out of it, since these kind of schemes effectively become illegal from April 07 as they are viewed as being an "artifical" means of avoiding tax.