[Lesley J]

When I decided to start a cleaning company, I was advised by local tax office, bank, accountant, etc that anyone that I employ including my self must pay tax and insurance, and this is what we do,  so how come another cleaning company who is operating in our area tell me that all their cleaners are self employed and the
client pays the cleaners  wages with cash weekly, and the cleaning company bill the client a fee quarterly
in advance for the privilage of having a cleaner sent by them.  My cleaners get a good rate of pay for this area
but I cannot compete with cash in hand payments. Also
that if any breakages occur the client pays the 1st £100.00, I must be going wrong somewhere
Lesley

[WavieDavie]

Ask your local tax office for their definition of an employee, and then what constitutes self-employment.

As has been said before, you should have no qualms about letting the proper authorities know about illegal working, or tax evasion. You're not grassing them up, you're protecting the rest of us who have to jump through all the hoops to keep ourselves legal, and who DO have to pay our taxes

You know it's the right thing to do. Phone from a call box on the other side of town if you must, but do it!!

[Ian Gourlay]

It sounds like a Selclene  or clone off to be.

As I understand it thats the way this Franchise operates.

Part of the reason for paying the Franchise fee is that they have done all the research , into the legallity, made contact with insurance companies, have a marketing system, and our bold enough to state in contract the £100 excess clause.

[Lesley J]

I have already contacted the local tax office who passed me around departments, finally spoke to the confidential line, who said that they would look into it, but would not comment on their working practices, or give me any information on whether this practice was
legal or not, the company in question are indeed a franchise. I shall just have to wait and see what happens next.

lesley

[DomesticAgency]

Interesting points raised here.

We employ although we did look at this angle.

What seems strange is it must be legal, as
surely they would not be allowed to carry on
selling the franchises?

If the revenue ruled that it was illegal...there
would be some very angry people around who
would no doubt let people know about it too.

[Ian Gourlay]

Although I am a carpet cleaner.

I have considered starting a home clean service.

Lookig through my fileing cabinet I found a Barclays Bank start up, sheet and it talks about this method .

Ie finding staff and charging monthly fee.

Seems a good way of operating  if still legal.

As you will get more cleaning hours before you run into VAT.

How you make sure customer continues to pay you a fee as you have found them a cleaner not sure.

How do you stop cleaner cleaning if customer is paying them and not you.

I think thats why I Clean Carpets.

[Kenny_Dobson]

It seems to me that this is actually a recruitment agency and that non of the faceless people behind the force would actually know diddly squatt about problems that may arise and operate on the principle that as long as you gain a client of the same value it doesn't matter if you lose one.

wiz