PAYE Liability?

anonimause

Hi all,

Sh*ts hitting the fan at the company I currently work for and I have been approached by a senior member of staff (privately and outside of company time) to advise me that the company is in a lot of trouble (financially) due to the actions of the MD.

Soon after I joined the company, I was asked by the MD to become a director of the company so I can be paid a different way (via dividends).

When he asked, I said I would look into it and let him know. After doing some research, I found that he would pay me the bare minimum required £5760 each year, and then tops me up with dividend payments there after.

Being a worry wart, I specifically asked via email how my tax and ni will be paid. He stated that of the £5760, I'd be paying a certain amount and then 10% of the dividend payments would be paid to HMRC also.

He also stated that as far as I was concerned, I was a normal employee and that I don't need to do anything in relation to my pay.

Fast forward to this week, the senior member of staff informs me that not only has my MD not been paying PAYE and the 10% dividend tax, but he has been creating fake invoices making me out to be a consultant to the company.

As you would imagine, I'm a little concerned about this, plus I'm now going through the process of seeking alternative employment.

The senior member of staff has advised me that the MD is likely to be approached by HMRC and other Government agencies in the coming week relating to this, and other issues, so has advised me to make excuses as to be away from the office.

Does anyone know what my liabilities would be? I've been employed for over two years now but he's treating me as a consultant (self employed) so not sure where I legally stand as far as employment laws and minimum notice periods.

I do not and have never signed a contract, according to Companies House I am no longer a director and to make things even more complicated, the MD does not know that we know any of this as of yet....

Your thoughts other than "your f**ked" lol..

Cheers

Anonimause

Turner1974

As long as your not a director of the company I think you'll be alright, as the blame/ bill will fall on him/her. Best find another job soon though

anamenottaken

anonimause wrote: »

Hi all,

Sh*ts hitting the fan at the company I currently work for and I have been approached by a senior member of staff (privately and outside of company time) to advise me that the company is in a lot of trouble (financially) due to the actions of the MD.

Soon after I joined the company, I was asked by the MD to become a director of the company so I can be paid a different way (via dividends). Directors are not remunerated by way of dividends unless they are also shareholders. Have you signed forms to be a director of the company? Are you listed at Companies House as a director of this company? Have you ever received payment of the "dividend"?

When he asked, I said I would look into it and let him know. After doing some research, I found that he would pay me the bare minimum required £5760 each year, and then tops me up with dividend payments there after.

Being a worry wart, I specifically asked via email how my tax and ni will be paid. He stated that of the £5760, I'd be paying a certain amount and then 10% of the dividend payments would be paid to HMRC also.

He also stated that as far as I was concerned, I was a normal employee and that I don't need to do anything in relation to my pay. So you have this confirmed by email?

Fast forward to this week, the senior member of staff informs me that not only has my MD not been paying PAYE and the 10% dividend tax, but he has been creating fake invoices making me out to be a consultant to the company. Have you been receiving payslips or just cheques or payments direct to your bank account?

As you would imagine, I'm a little concerned about this, plus I'm now going through the process of seeking alternative employment.

The senior member of staff has advised me that the MD is likely to be approached by HMRC and other Government agencies in the coming week relating to this, and other issues, so has advised me to make excuses as to be away from the office. Why? What has this "senior member of staff" got riding on this? Why are they telling you? How do they know what is happening? Do you trust them?

Does anyone know what my liabilities would be? I've been employed for over two years now but he's treating me as a consultant (self employed) so not sure where I legally stand as far as employment laws and minimum notice periods. If you don't have any written particulars of employment (which you should have but it sounds as though you don't), then the company is entitled to receive notice of one week from you.

I do not and have never signed a contract, according to Companies House I am no longer a director and to make things even more complicated, the MD does not know that we know any of this as of yet.... So you were a Director at one time? Did you sign a form or letter resigning from the position?

Your thoughts other than "your f**ked" lol..

Cheers

Anonimause

.....................

anonimause

anamenottaken wrote: »

.....................

Sorry it seems the forum won't let me respond like you have...

Yes I was a director and I signed a companies house form to become one. Then sometime after I was removed (without any knowledge or signing something) as one.

I am apparently paid a dividend each month to top up my salary.

As for confirmation, yes via email I ensured that he confirmed that my PAYE was paid and any additional taxes were also. He stated that as far as I am concerned I'm still a normal employee, he would deal with everything else.

I have received the odd payslip showing amounts that make up the £5760. I do recall that in April's (if I'm lucky to get one) it shows tax/night but only a small amount. The rest only show a my wage before top up and no tax/night.

The senior member of staff is an businesses partner for the other company and my MD has breached the t & c's of some major funding as a result of his actions. Whilst doing VAT returns he noticed invoices equating to the amount I'm paid being submitted from one company to the other for no valid reason.

Issue is, the invoices are fake and more importantly appear to be issued by myself and another colleague.

anamenottaken

anonimause wrote: »

Sorry it seems the forum won't let me respond like you have...

Yes I was a director and I signed a companies house form to become one. Then sometime after I was removed (without any knowledge or signing something) as one.

I am apparently paid a dividend each month to top up my salary.

As for confirmation, yes via email I ensured that he confirmed that my PAYE was paid and any additional taxes were also. He stated that as far as I am concerned I'm still a normal employee, he would deal with everything else.

I have received the odd payslip showing amounts that make up the £5760. I do recall that in April's (if I'm lucky to get one) it shows tax/night but only a small amount. The rest only show a my wage before top up and no tax/night.

The senior member of staff is an businesses partner for the other company and my MD has breached the t & c's of some major funding as a result of his actions. Whilst doing VAT returns he noticed invoices equating to the amount I'm paid being submitted from one company to the other for no valid reason.

Issue is, the invoices are fake and more importantly appear to be issued by myself and another colleague.

I repeat - dividends are paid to shareholders. Are you a shareholder?

It is actually better that you have been removed as a director as that now somewhat limits your liability for malpractice. Have you established the date that you ceased to be a director?

£5,760 suggests you are not due to pay any NI contributions. Not a good thing if you found yourself out of a job and wanting JSA. This also means that you will have gap in your contribution history counting towards your state retirement pension. How old are you?

anonimause

anamenottaken wrote: »

I repeat - dividends are paid to shareholders. Are you a shareholder?

It is actually better that you have been removed as a director as that now somewhat limits your liability for malpractice. Have you established the date that you ceased to be a director?

£5,760 suggests you are not due to pay any NI contributions. Not a good thing if you found yourself out of a job and wanting JSA. This also means that you will have gap in your contribution history counting towards your state retirement pension. How old are you?

I'm not sure. There was a discussion about receiving x% of the companies profits however none were ever paid.

According to companies house late last year and my age is between 20 and 30

marybelle01

My advice would be not to resign and make no excuses to be away from the office. Why should you? You have done nothing wrong, and you have no idea what is going on, whether this person is telling the truth, or what is in it for them in telling you this. If these agencies turn up as claimed, you can bet your last dollar on the fact that you will be a person of interest to them. Who else can say that you didn't write an invoice other than you? In your shoes I would want to be damned sure that I was there in the office, so I didn't look guilty or like I am hiding anything.

anonimause

marybelle01 wrote: »

My advice would be not to resign and make no excuses to be away from the office. Why should you? You have done nothing wrong, and you have no idea what is going on, whether this person is telling the truth, or what is in it for them in telling you this. If these agencies turn up as claimed, you can bet your last dollar on the fact that you will be a person of interest to them. Who else can say that you didn't write an invoice other than you? In your shoes I would want to be damned sure that I was there in the office, so I didn't look guilty or like I am hiding anything.

Good point. I've been considering leaving for a while so ill be resigning pending getting a new job however I'll continue to work there. I need the money lol

anamenottaken

anonimause wrote: »

Good point. I've been considering leaving for a while so ill be resigning pending getting a new job however I'll continue to work there. I need the money lol

What do you mean by "resigning pending getting a new job"?



You either resign or you don't.



If you resign then you can't qualify it. If you tried that, the company could decide that they would give you notice and then you would be out of a job completely - though £110/week is well short of minimum wage if you are working full-time. How many hours a week do you work? Certainly while you are no longer a director/office holder you must be paid minimum wage.


Or did you mean you'll resign as soon as you get a new job?

anamenottaken

marybelle01 wrote: »

My advice would be not to resign and make no excuses to be away from the office. Why should you? You have done nothing wrong, and you have no idea what is going on, whether this person is telling the truth, or what is in it for them in telling you this. If these agencies turn up as claimed, you can bet your last dollar on the fact that you will be a person of interest to them. Who else can say that you didn't write an invoice other than you? In your shoes I would want to be damned sure that I was there in the office, so I didn't look guilty or like I am hiding anything.

I agree.

We are responding to essentially the same questions in two threads now and saying much the same thing. Perhaps the threads could be merged.

anonimause

I am currently applying for and interviewing for a new job.

Once I get a new position, I'll then resign from my current