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Employer not paying my tax

2

Comments

  • Any
    Any Posts: 7,959 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    To pay PAYE is definitely an employers duty and employee will not be kept liable for it.

    HOWEVER, in this case the OP says he doesn't even have a payslips or P60 - so how is he going to prove to HMRC that he was employed and paid his dues???
  • Any
    Any Posts: 7,959 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Schneckster - by the way I know it works like that in other countries. I know for sure it works like that in Czech Republic for example. So if you did accounts elsewhere you might think that.

    But definitely not in the UK.
  • greendale9061
    greendale9061 Posts: 90 Forumite
    Part of the Furniture Combo Breaker
    edited 7 August 2009 at 12:42PM
    Hi,

    I am a payroll administrator for a medium sized company (I have 89 employees to look after) I definatly agree that your employer hasn't got a clue what is invloved with PAYE.

    If in your contract it states you are to be paid monthly .e.g the last day of evey month & if the employer missed that date (giving you a cheque, BACS or cash) they in effect they have broken their contract. It wont apply if you started your job lets say 7 days before pay day, as the payroll may not have time to process your wage. If it relys on your timing for the week before.

    The employer HAS to provide you with a P60 (usually available in May) if the employer is using a Payroll computer system e.g. SAGE/SUPEPAY, then the tax is worked out accordingly to the tax code entered, so a payslip will be automatically processed. With my system, I must enter a tax code to create a new employee in my system. Wether it's emergency or BR. (usually
    647L)

    The tax rates are: Basic rate 20% up to £37,400
    Higher rate 40% over £37,400.

    For you to have NO TAX deducted, you need to earn less that £125.00/wk or £540.00/month. (more info go to www.hmrc.gov.uk)

    If the employer is using the manual method - this can often cause mistakes in the calculations & if they dont know what they are doing or may not be deducting any tax or NI. I am assuming this manual method is none existant, as everything must be filed online by 2012.

    I also agree that if the employer is not deducting tax, it is the employee repsonibility to contact the HMRC and chase it up, as payroll are not authorised to ring up & ask about your details.

    If the employer is deducting tax, but not passing it on to HMRC, then the Employer is repsonsible.

    If the employer tells that you are SELF - Employed, it is your repsonsibility to fill out your Self Assesment, but you still need payslips & details from your Payroll Dept!

    Hope this helps. :-)
  • I Agree, your company doesn't seem to know what they are doing. Ideally they should be using a payroll bureau to provide them with payroll. I work for a bureau that provides these services to companies for this very reason! PAYEpeople.

    The standard tax code that is in use at the moment is 647L, therefore if your payslip doesn't show this you ideally need to get a P46 - link below (Add the https://www.)

    payepeople.co.uk/PDF/p46.pdf

    If the employer hasn't paid over the tax on your behalf, don't worry it is your employers responsibility to do this not yours.

    If you can't sort this out yourself, then as other posts suggest, find a job then let the HMRC know.

    I hope this helps
  • Noospheric
    Noospheric Posts: 56 Forumite
    edited 16 November 2009 at 1:13PM
    Hi, I appreciate this is an old thread now but some interesting posts have been added since I last read it.

    I am the OP and would like some further advice. Here's where I currently stand:

    I resigned from this job Friday before last due to the ongoing issues. I have spoken to ACAS who are going to help me resolve issues of unpaid wages when my period of notice is over. I spoke to HMRC last week and I was told they are unable to do ANYTHING if I don't have a PAYE number.

    I want to do the right thing and get this sorted, but how do I go about it? I've spoken to my employer who constantly gives me false promises. Since I resigned they are talking about ending the company which will leave me in a mess with wages and tax being owed.

    What can I do?

    Edit: Just to clarify, this employer is useless. I have no contract, no pay slips and have always been paid by cheque.
  • fengirl_2
    fengirl_2 Posts: 4,530 Forumite
    HMRC are talking rubbish - they can trace your employers PAYE reference through his address. If the employer is not registered for PAYE, then HMRC have a duty to start investigating this. I would definitely go back to HMRC - ask to speak to a technical adviser and give them the full SP on this.
    The lack of a contract and payslips can be taken to an ET - the forms are online.
    If they close the company, you can still go after the money owed through an ET, or personally to the owners if its not a limited company.
    PM me if you need more support.
    £705,000 raised by client groups in the past 18 mths :beer:
  • Thankyou, fengirl.

    I am the only employee for this company so I am assuming there is no PAYE set up.

    I will contact HMRC again, quite annoyed that they told me there's nothing they can do if there is.
  • I have a similar query about tax.

    My ex employer is in administration and it appears that the HMRC is owed a few thousand in paye.

    My question would be if the employer hasn't been paying paye but has now gone into administration how does that leave my tax status. Will I owe the tax man money?

    Thanks

    CV
  • kalaika
    kalaika Posts: 716 Forumite
    I have a similar query about tax.

    My ex employer is in administration and it appears that the HMRC is owed a few thousand in paye.

    My question would be if the employer hasn't been paying paye but has now gone into administration how does that leave my tax status. Will I owe the tax man money?

    Thanks

    CV

    In short, if your employer has been deducting PAYE from you (shown on your payslips) but not paying it across to HMRC, then that's the company's/administrator's problem, not yours. In that situation, HMRC can't come after you for it.
    No trees were killed to send this message, but a large number of electrons were terribly inconvenienced. - Neil deGrasse Tyson (@neiltyson)
  • fengirl_2
    fengirl_2 Posts: 4,530 Forumite
    You would be credited with the tax and NIC deducted in the same way as if it had been paid to HMRC. So, if you are due a refund for instance, you still get it.
    £705,000 raised by client groups in the past 18 mths :beer:
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