Wrong earnings on P45

Robert.mk

Hi.
I have got a friend who has asked what to do if he has got wrong P45. He has recently changed job. His old employer gave him a P45. According to the payslips my friend earned around £5500 but on the P45 is only £1120. I think that the employer is trying to hide the true earnings to avoid paying the tax.
What do you think about this and what to do with this?
He has already contacted the employer which told him that this is not his problem any more.

MatyMoo

If they have payslips backing this up I would be asking the new employer if I could complete a P46 rather than hand in the P45, especially of the previous employer isn't prepared to re-issue correctly.

If your friend ends up paying the wrong tax in the year because of this they would be liable for any corrections due.

My other concern would be that the NI is wrong too which could cause issues later with any pension claim.

GavB79

Maybe he is misreading it and the 1120 is the tax paid not the earnings.

Robert.mk

He is not misreading. I have seen the P45. there is stated the £1120 as his gross earnings from this employer and about £100 tax. I do not remember the exact amount of the tax.

[Deleted User]

Write to the old Employer asking for a resolve just add a note at the bottom of the letter ifyou have no joy you will contact HMRC. If they don't do anything contact HMRC and explain your suspisions about tax evasion, who will gladly do a compliance check and go through everything with a fine tooth comb!

Bryndis

I would just contact the tax people and explain the situation, I had a p45 supplied to me which had the wrong leaving date on it - by a month - and my ex employer refused to replace it, apparently their computer could not cope with making the correction. I called the tax office and left it with them. They seemed very interested...

Russe11

Should be able to get a nice tax rebate out of this.