Report Misclassification - To HMRC

A template for reporting suspected employment misclassification to HMRC, with guidance on what information to include.

Report Misclassification - To HMRC

Disclaimer: This is a template - always read the linked guide first. BeautyKiln gives general information, not legal advice.

CONFIDENTIAL

To: HM Revenue and Customs National Minimum Wage team / Employment Status team Date: [DATE]

Online reporting: You can report this at www.gov.uk/report-an-employer - but this template helps you organise the information you'll need.

By post: HMRC, Pay and Work Rights Helpline, Department for Business and Trade

By phone: 0300 123 1100 (ACAS) or 0800 917 2368 (Pay and Work Rights)

Your Report

Note: You can make this report anonymously if you prefer. If you do give your name, HMRC will not normally share it with the employer without your consent.

About you (optional - you can report anonymously)

• Your name: [YOUR NAME or "I wish to remain anonymous"]
• Your contact details: [YOUR EMAIL/PHONE or "N/A"]
• Your role: [e.g., "hairdresser", "beauty therapist", "nail technician", "barber"]
• How long you worked there: [START DATE] to [END DATE or "present"]

About the employer

• Business name: [SALON/BUSINESS NAME]
• Owner's name: [SALON OWNER'S NAME if known]
• Business address: [FULL ADDRESS]
• Number of workers affected: [APPROXIMATE NUMBER - "I believe approximately X workers are affected"]

What's happening

I believe that [SALON NAME] is treating workers as self-employed when they are in fact employees (or workers). This means they are:

[INCLUDE ALL THAT APPLY:]

• Avoiding employer's National Insurance contributions
• Avoiding PAYE obligations
• Denying workers their right to paid holiday
• Denying workers the National Minimum Wage / National Living Wage
• Avoiding auto-enrolment pension obligations
• Avoiding statutory sick pay obligations
• Avoiding employment protection rights

How the working arrangement actually works

Please describe the reality of the working relationship as clearly as you can:

Hours and schedule: [Describe who controls when you work. For example: "I am told to work Tuesday to Saturday, 9am to 6pm. I cannot choose my own hours. If I want a day off I have to ask permission, like an employee would."]

Control over work: [Describe how much control the salon has. For example: "The salon sets all prices. I must use their products. I must follow their policies. I cannot bring my own equipment. I wear their uniform."]

Substitution: [Can you send someone else to do your job? For example: "I cannot send another stylist to cover for me. Only the owner can arrange cover."]

Client relationships: [Who owns the client relationship? For example: "All bookings go through the salon's reception. Clients are the salon's clients, not mine. I am not allowed to take clients with me if I leave."]

Financial arrangements: [How are you paid? For example: "I pay £X per week in chair rent, but the salon controls everything about how I work. I have no ability to grow my own business or make independent commercial decisions." OR "I receive X% commission. I do not invoice the salon. I have no say in pricing."]

Other indicators: [Anything else that suggests employment. For example: "I had a performance review last month. I was given a verbal warning for being late. New staff go through a 'probation period.'"]

Evidence you have (or can provide)

• Contract or written agreement
• Rota/schedule set by salon
• Messages from owner/manager giving instructions
• Photos of uniform/branding requirements
• Price list set by salon
• Payslips or payment records
• HMRC CEST tool result showing employment
• Witness statements from other workers
• Other: [DESCRIBE]

What you want HMRC to do

I am asking HMRC to investigate whether [SALON NAME] is correctly classifying its workers for tax purposes and whether workers are being denied employment rights.

Notes for you (delete before sending):

• You CAN report anonymously - HMRC accepts anonymous reports
• If you give your name, HMRC will usually keep it confidential unless legal proceedings require disclosure
• Your employer cannot legally sack you or punish you for reporting to HMRC - this is called 'whistleblower protection' under the Employment Rights Act 1996
• You can also report to ACAS (0300 123 1100) for employment rights issues
• The online form at www.gov.uk/report-an-employer is often the easiest route
• HMRC investigations can take months - be patient
• Consider also getting advice from Citizens Advice or a trade union
• If you're a member of the NHBF, they have an employment advice line