Employer deducted tax but did not give to HMRC

annaanna_2

Hello,

Not certain if this is the correct forum to post in.

Previous employer has deducted tax and NI but has not handed over the money to HMRC (for year ending 2010).

Employer was a limited company and decided to fold in January 2010 when I was made redundant.

I didn't receive a P45 or P60 for that year.
I didn't receive my final months pay or redundancy money.

Took employer to court and won, but bailiffs (paid for by me) couldn't find him and so he didn't pay me either of these.
A charity paid one of these amounts for me.

I cannot afford to pay this unpaid tax, I already took a loan out because this employer did not deduct my student loan and HMRC have forced me to pay it all in one go.
The unpaid tax and NI is about £5'000.

HMRC say it's all my responsibility and I need to pay them and then take previous employer to court to get the money back, but as already proven, despite winning the court case, bailiffs cannot find him and I'll never get the money back.

I can't borrow any more money, I live paycheck to paycheck.

Can anyone advise me of an organisation who can help? Acas helped last time, but I feel as though I lost last time, I didn't receive any of my money!

dori2o

annaanna wrote: »

Hello,

Not certain if this is the correct forum to post in.

Previous employer has deducted tax and NI but has not handed over the money to HMRC (for year ending 2010).

Employer was a limited company and decided to fold in January 2010 when I was made redundant.

I didn't receive a P45 or P60 for that year.
I didn't receive my final months pay or redundancy money.

Took employer to court and won, but bailiffs (paid for by me) couldn't find him and so he didn't pay me either of these.
A charity paid one of these amounts for me.

I cannot afford to pay this unpaid tax, I already took a loan out because this employer did not deduct my student loan and HMRC have forced me to pay it all in one go.
The unpaid tax and NI is about £5'000.

HMRC say it's all my responsibility and I need to pay them and then take previous employer to court to get the money back, but as already proven, despite winning the court case, bailiffs cannot find him and I'll never get the money back.

I can't borrow any more money, I live paycheck to paycheck.

Can anyone advise me of an organisation who can help? Acas helped last time, but I feel as though I lost last time, I didn't receive any of my money!

It matters not whether the employer pays the money to HMRC, but whether you have had such deductions taken from your pay.

Do you have any payslips which confirm that tax and NI has been deducted?

annaanna_2

I have an employment contract which shows my gross salary.

The amounts deposited into my bank were typical of a net amount that you would expect from the gross salary.

I have a P60 from the previous tax year which shows my gross pay and tax and NI deductions.

I have payslips.

Can you offer any suggestions?

F_T_Buyer

I had this about a decade ago, my employer (my first full time job) went bust and didn't pay anyone (including me) but had given me pay slips. HMRC said I needed to pay the tax shown on the payslips, but refused to let me know what had not been paid by my employer (data protection you see) - so how do I know whether it needs to be paid.

In the end I just sent a letter copying my payslips, showing tax was deducted and it is not my responsibility and left it at that. They can't chase payment then refuse to tell me what needs paying. In all, HMRC were totally disorganised.

They did [some years later] send me a letter saying I can buy NI contributions as I have not paid any; I just resent my pay slips showing tax and NI was deducted and to take it up with the company. They soon credited me with the NI contributions.

persa

annaanna wrote: »

Hello,

Not certain if this is the correct forum to post in.

Previous employer has deducted tax and NI but has not handed over the money to HMRC (for year ending 2010).

Employer was a limited company and decided to fold in January 2010 when I was made redundant.

I didn't receive a P45 or P60 for that year.
I didn't receive my final months pay or redundancy money.

Took employer to court and won, but bailiffs (paid for by me) couldn't find him and so he didn't pay me either of these.
A charity paid one of these amounts for me.

I cannot afford to pay this unpaid tax, I already took a loan out because this employer did not deduct my student loan and HMRC have forced me to pay it all in one go.
The unpaid tax and NI is about £5'000.

HMRC say it's all my responsibility and I need to pay them and then take previous employer to court to get the money back, but as already proven, despite winning the court case, bailiffs cannot find him and I'll never get the money back.

I can't borrow any more money, I live paycheck to paycheck.

Can anyone advise me of an organisation who can help? Acas helped last time, but I feel as though I lost last time, I didn't receive any of my money!

My understanding is that if tax has not been paid over, HMRC must first pursue the employer and if unsuccessful, can only chase the employee if the employee knew that the money they were taking home did not have tax deducted by the employer. (SI 2003/2682 Reg 81)

If your pay corresponded to your payslips which showed tax being deducted and you checked that those deductions were correct, then I would imagine it's hard to argue you didn't know your employer was wilfully failing to deduct tax.

Have HMRC written to you setting out the reasons why they believe you are liable for the amount? What are the grounds given in their correspondence?

dori2o

If your payslips show deductions for tax and NI you have nothing to worry about. The fact the employer has not paid the deductions over to HMRC is nothing to do with you. You are not responsible for ensuring your employer pays their dues to HMRC. Your only responsibility is ensuring that the correct tax is being deducted from your payslip.

Write to HMRC providing the payslips as proof that tax was deducted and this should go some way to resolving the matter.

LadyMissA

Send only copies or scan them in onto an email as they will lose them

dori2o

LadyMissA wrote: »

Send only copies or scan them in onto an email as they will lose them

They won't accept copies due to the fact they can be doctored, and don't deal with email queries of this sort as yet.

Send the originals, recorded/special delivery if you wish, but keep copies for yourself

2nd_Time_Lucky

i had this 20 years ago and took my payslips to the tax office, in person.I was freaking out at the huge tax bill i had been sent They took copies, someone talked the situation through with me and 6 months later my ex boss found themselves in court with HMRC wondering why they hadnt passed on PAYE for the previous 17 years :eek: