We run a small family business and started using casual labour eight years ago. I kept records of payments made and submitted these to the Inland Revenue via our accountant. We have now had a demand for seven years’ unpaid tax, amounting to over £20,000.
In Inland Revenue terms this is a question of “status”: whether your “casuals” were employed or self-employed. If you can argue that your casuals are in fact self-employed they should pay their own tax, although this should have been sorted out eight years ago. The first step is to ask the inspector for an explanation of his decision in writing. You can always appeal, but you would then be advised to see either an accountant specialising in tax or a suitably experienced solicitor.