What are the considerations for Employed?
If you are employed, you pay tax by Pay-As-You-Earn (PAYE) and NI at the Class 1 rate, whether you are employed by your own company, someone else’s company, an agency or the client. From April 1996 there is a legal obligation on all employees to maintain complete records to enable completion of a tax return if required. These records must include anything relating to pay, benefits, expenses, interest, dividends and share options. The records must normally be kept for 22 months, but may sometimes have to be kept longer. The Inland Revenue issues a leaflet on the subject.
