Eastern European farm workers - Tax

Uk LtdUk Ltd Posts: 1,228
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Obviously we have open borders, and these low skilled workers are coming in to plug gaps in the manual labour market, which they should be applauded for.

However, around here, each farm seems to have 8-10 caravans which the farmer 'lets' to the foreigners for a certain amount of their wage.

How are the taxes for this worked out? Both their wage, and the farmers 'income' from the letting a. Are they excluded because they are caravans?

Any farmers or families of here?

Comments

  • spookyLXspookyLX Posts: 11,730
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    Aren't they paid cash in hand tho ?
  • mackaramackara Posts: 4,063
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    spookyLX wrote: »
    Aren't they paid cash in hand tho ?

    Unlikely, the farmer would end up paying out thousands in fines if they were not paid the minimum wage and put through the books, the other option for the workers is to register as self employed in which case they would pay their own tax.
  • Uk LtdUk Ltd Posts: 1,228
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    spookyLX wrote: »
    Aren't they paid cash in hand tho ?

    Surely not?!?! If so, they must all have to submit tax returns at the end of the year?

    They must be paying tax, the open borders is supposed to benefit us. :confused:
  • Evo102Evo102 Posts: 13,630
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    Here are a couple of links that should answer your questions:-

    https://www.gov.uk/agricultural-workers-rights

    http://gla.defra.gov.uk/
  • mackaramackara Posts: 4,063
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    Uk Ltd wrote: »
    Surely not?!?! If so, they must all have to submit tax returns at the end of the year?

    They must be paying tax, the open borders is supposed to benefit us. :confused:

    Based on the minimum wage the workers would pay very little tax anyway, if self employed even less or maybe nothing.
  • pugamopugamo Posts: 18,039
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    If I were to take a wild guess, I would imagine that the cost of accommodation is taken out of their wages, leaving their wages just below the threshold at which they begin paying income tax, this would benefit the employer too as they have less to pay in tax and national insurance on behalf of the employee.

    But I could be totally off the mark.
  • Uk LtdUk Ltd Posts: 1,228
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    pugamo wrote: »
    If I were to take a wild guess, I would imagine that the cost of accommodation is taken out of their wages, leaving their wages just below the threshold at which they begin paying income tax, this would benefit the employer too as they have less to pay in tax and national insurance on behalf of the employee.

    But I could be totally off the mark.

    That's not allowed though, they may be charged £4.82 per day for accomadation, as long as doing so does not bring their recieved pay below minimum wage, which is £6.22 per hour if employed for 26 weeks or less per year (which you can bet none of them will be, to prevent having to pay them £6.88 an hour)
  • peopleschmeoplepeopleschmeople Posts: 604
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    mackara wrote: »
    Based on the minimum wage the workers would pay very little tax anyway, if self employed even less or maybe nothing.

    From tomorrow, full time at minimum wage should attract taxation at around £800 per annum.
  • skp20040skp20040 Posts: 66,874
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    There is a maxmium that can be deducted per week via wages for accommodation that is part of the minimum wage, that maximum is £ 33.74 per week.

    However even if you pay more than the minimum wage and the employee rents accommdoation in a separate deal from you when you get a NMW inspection they will look at what money they have left after rent and tell you you cannot do that as when they pay you the rent if they then have less left to them than £6.19 per hour after they pay their rent it means they have earned less than the minimum wage via your employ even though it may hav ebeen the persons choice to rent from you , silly really as if they rented from another landlord and pay rent and ended up with the same money that does not count as they are not their employer.
  • scruffpotscruffpot Posts: 4,570
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    I once worked on a fruit farm a few years back (fruit picking).. It was all cash in hand, they had foreign workers living on the site. X amount of them lived on site in manky static homes. However they had a lot of people from the welsh valleys working as well. When they suddenly dropped the price we were paying to pick per punnet, all the welsh lot sat down and refused to work, where as all the foreign workers just carried on as per normal, same as me. Then they decided to up the price again per punnet a few hours later, work carried on as per normal. However I had mass loads of punnets to cash in :)
  • darkislanddarkisland Posts: 3,178
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    Uk Ltd wrote: »
    Obviously we have open borders, and these low skilled workers are coming in to plug gaps in the manual labour market, which they should be applauded for.

    I don't usually go in for pedantry, but your premise above is a little flawed. Foreign workers are not 'plugging the gaps' - they are doing jobs which our indigenous unemployed won't do for a variety of reasons.
  • Fred FlintstoneFred Flintstone Posts: 795
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    pugamo wrote: »
    If I were to take a wild guess, I would imagine that the cost of accommodation is taken out of their wages, leaving their wages just below the threshold at which they begin paying income tax, this would benefit the employer too as they have less to pay in tax and national insurance on behalf of the employee.

    But I could be totally off the mark.

    Don't think that is right. Any deduction for accommodation would be taken from wages after tax and NIC has been deducted, not gross wages.
  • Dare DevilDare Devil Posts: 118,737
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    darkisland wrote: »
    I don't usually go in for pedantry, but your premise above is a little flawed. Foreign workers are not 'plugging the gaps' - they are doing jobs which our indigenous unemployed won't do for a variety of reasons.

    Off topic, but any proof of that claim?
  • U96U96 Posts: 13,937
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    Eastern Europeans are doing the crap jobs and the good jobs.
  • [Deleted User][Deleted User] Posts: 68,508
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    mackara wrote: »
    Unlikely, the farmer would end up paying out thousands in fines if they were not paid the minimum wage and put through the books, the other option for the workers is to register as self employed in which case they would pay their own tax.
    They are self employed. It is common for people starting this kind of work to sign a paper saying that they are responsible for paying their own tax. Since on the whole the fruit picking season is short, it is unlikely that many of them go over the tax threshhold.
    Dare Devil wrote: »
    Off topic, but any proof of that claim?

    My daughter did a season fruit picking, staying on a migrant labour camp in Kent, and was the only Uk citizen in the whole camp. She only had to apply, not do an interview or any tests, so any Brits could have done the same. The fact that they didn't suggests that none of them wanted to.
  • Dare DevilDare Devil Posts: 118,737
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    My daughter did a season fruit picking, staying on a migrant labour camp in Kent, and was the only Uk citizen in the whole camp. She only had to apply, not do an interview or any tests, so any Brits could have done the same. The fact that they didn't suggests that none of them wanted to.

    Maybe more Brits applied, but weren't chosen?

    Surely, not everyone that applied got through? What if there were 100 placements and 1000 applied?
  • darkislanddarkisland Posts: 3,178
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    Dare Devil wrote: »
    Off topic, but any proof of that claim?

    Er............only our vast pool of unemployed / flexible labour market (depending on your outlook.) who're at home, and not doing the jobs that others from overseas have come to do. I'm thinking specifically about the types of jobs outlined above - service industries which are traditionally run by either outright crooks or less than benevolent employers.
  • Dare DevilDare Devil Posts: 118,737
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    darkisland wrote: »
    Er............only our vast pool of unemployed / flexible labour market (depending on your outlook.) who're at home, and not doing the jobs that others from overseas have come to do. I'm thinking specifically about the types of jobs outlined above - service industries which are traditionally run by either outright crooks or less than benevolent employers.

    Try again. All that proves is that employers have chosen to employ a foreign person, it does not show that British people have not applied or been interviewed for those positions.
  • [Deleted User][Deleted User] Posts: 622
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    Dare Devil wrote: »
    Maybe more Brits applied, but weren't chosen?

    Surely, not everyone that applied got through? What if there were 100 placements and 1000 applied?

    Where were these jobs advertised? In what language? What happens to a long-term unemployed person who takes a short-tem minimum-wage job? At the end do they go back on the dole on worse conditions than before though loss of historic benefits?
  • walterwhitewalterwhite Posts: 56,907
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    mackara wrote: »
    Based on the minimum wage the workers would pay very little tax anyway, if self employed even less or maybe nothing.

    Surely that depends on how many hours they are working?
  • mackaramackara Posts: 4,063
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    Surely that depends on how many hours they are working?

    True, based on a normal 38 hour week they would pay around 800 pounds a year from today according to another poster which is not a lot though there would be N.I on top of that.
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