New Employer Won't Deduct Tax & NI -Help!!

MEGANJODELLE

I hope someone can help me by providing advice on this. I've been offered a part time job where I get paid fortnightly into my bank account. However, I was suprised to learn that the employer pays me without any deductions. I thought this only happened with "cash in hand" work, why do they do it this way?

More importantly, please can someone tell me what I have to do to ensure I pay the correct tax ans NI? Is there anyway to do this every month? Alternatively, do I have to fill in a self assessment form at the end of the financial year quoting all those earnings? If this is the case, should I be putting a percentage aside each time I get paid? But if so, how much? Although this is my third job, it still won't take me anywhere near the higher tax bracket. What is that now? Around £37000?

Sorry for all the questions, any guidance much appreciated!

Thanks

Megan

WHA

Assuming you are earning in excess of the NIC threshold, then they aren't allowed to pay you without deduction of tax and NIC if you are an employee. They will be in trouble and have to pay the tax and NIC if they are found out. Your main problem will be the absence of state benefit credits towards SSP, SMP, state pension etc., presumably the absence of payslips and P60 to prove your earnings for mortgages etc. It sounds like they are trying to class you as self employed, in which case you would be liable for your own tax and NIC? Do you have a "contract of employment"?

MEGANJODELLE

Thanks for your swift reply, I've no contract of employment yet and they do seem to want to term me "self employed". What's in it for them this way? If this is the case, what do I have to do regarding my tax and NI?

Andy_L

If you're self employed they don't have to pay employers NI contributions or give you stuff like Paid Holiday & Sick leave.

Timmne

You're not allowed to be called self employed if the only thing self employed about it is the way they pay you. They're just trying to shamelessly evade employer's NI contributions. I would turn down the job offer and report them to HMRC. (but then I'm an accountant - it's part of my job!)

barafear799

Glad I came across this thread - hopefully there are some experts out there who can help me.

I have a second job (my first job more than uses up my personal allowance for the year) - my wages from my second job (with a MAJOR retailer beginning with "T") vary - so that sometimes I fall slightly below the NI threshold - but when I started the job (12 months ago) - I informed them that it was a 2nd job and that I should be taxed accordingly (ie: all my earnings subject to 22%) - all went dandy up till two months ago - when I noticed that on £400 earnings I was paying less than £15 in tax - I mentioned this to my boss - who mentioned it to the "wages dept" - and came back and told me it was down to me to contact the tax office and sort it out.

Is this the case or should it be Mr T's responsibility to get my PAYE correct?
I have a normal employee contract - I get sick pay, pension etc etc.

Timmne

What's your tax code?

Timmne

Actually saying that; what I meant to say was "what's your tax code with Tesco"?

barafear799

522L I think.

Should it be different?? I haven't actually looked at all the payslips where the tax was being deducted correctly.

Timmne

As you have a main job where you're using your tax allowance your tax code should be BR at Tesco - this is why you weren't taxed a lot in the last couple of months at a guess...

Get onto your tax office after 19th May (when your employers will have both filed your P14s. The tax office will then iron out any issues you have with regards to unpaid tax.