I have just acquired a new client (a sole trader) who told me that he pays his son £800 a week working for him. This has only happened in the last month. My initial thoughts are that he is under-declaring sales and that his son should maybe register as a subcontractor. He also mentioned that he has bought his son a work van, and pays for the petrol and insurance, etc. He wants to remain a sole trader and not take his son on in a partnership, so I'm thinking the only option is him employing his son, which will obviously incur employer’s National Insurance contributions. Am I being blind to any other suitable options?  

Arthur Weller replies:  

I think that you need to look carefully at HMRC’s Employment Status manual (www.gov.uk/hmrc-internal-manuals/employment-status-manual). If the rules state that the scenario with which you are dealing make the son an employee, then you have no choice but to register the son for PAYE purposes.