I've been stupid - P45 and tax question

PlutoinCapricorn

I am getting a bit confused here! I am self employed myself, which makes things a lot simpler.

I know that P45s are not valid for very long, and learned on here that many new employers now expect you to complete a P46 anyway, as they don't want to wait a few weeks for the previous employer to send your P45.

HMRC are one thing, a potential employer is another. Explaining gaps on your CV is different from HMRC picking up the fact that you went off the radar for a while. They may wonder why you didn't sign on for example.

McKneff

nickthegreat wrote: »

my cv slightly overstates my work at the bars, mainly because i think finishing a masters then bumming about/working on oracle for 18months doesn't look great

so if i do get a job, whats the likelihood that the inland revenue will start asking what i've been up to? are you saying that my p45 has no detail on it anyway (ie my last job back at uni) because its over a year ago?

if they do ask me what i've been doing you're saying its best to say i've received hand outs from relatives rather than just say i've been doing part-time work, or claim ignorance and say that i thought it was sorted by my boss/under the hours required to do anything about it?

seems a bit much that i have to lie. oh well....

But you are lying anyway, see the BOLD above. Overstating is lying no matter what. So same thing.

HMRC willl not ask to see your CV,

nickthegreat

McKneff wrote: »

But you are lying anyway, see the BOLD above. Overstating is lying no matter what. So same thing.

HMRC willl not ask to see your CV,

is it? telling a prospective employer that you worked slightly more hours than you did isn't the end of the world. telling HMRC that you're not working when you have been is slightly more serious.

i'm not worried about HMRC wanting to see my CV. i'm worried about my potential employer questioning my taxable earnings when they receive a p46/45. additionally i'm worried about HMRC just asking what i've been up to when i pop back up on their radar.

purplepardalis

But your potential employer won't see a P45. The one that you have from your previous job is no longer valid. You will fill out a P46 and your tax code will be sent through to their payroll.

It is unlikely that they will start questioning you.

If you're that worried then wait until after April and get a job then in the new tax year

PlutoinCapricorn

Why didn't you sign on when you left Uni?

nickthegreat

because i was working enough part time hours to mean that i wouldn't have received any jsa anyway. i could've claimed it anyway, but its a bit dishonest

nickthegreat

i think if what purplepardalis is saying is correct there shouldn't be too much of a problem, but its just annoying that i'm in this position. i'd have done things by the book if the option was there.

i think the problem was i preferred to work a few hours a week rather than claim job seekers, even though the difference in money was negligable

Savvy_Sue

nickthegreat wrote: »

2. if i do get questioned about my earnings i have no problems answering questions about myself, but i am good friends with one of the owners of the bars, and would rather not drop him in any trouble. is he likely to get in any? as i said, my hours are under the taxable amount, so am i considered casual staff?

If you are GOOD friends with someone who isn't meeting their legal obligations as an employer, then the friendly thing to do is encourage them to get things on the level. Seriously, you may not be willing to get HMRC on his case, but any future employee could do so, and it's not going to get any better.

Of course, there's nothing wrong with paying staff in cash. There is a LOT wrong with not keeping proper records, not giving payslips, and not paying HMRC any tax or NI which is due. Doesn't matter if the staff work regular hours or 'as and when'. Doesn't matter if they're all below the threshhold for deducting tax and NI. Doesn't matter if profits are very tight. Your friend doesn't want to be on the wrong side of an investigation by HMRC.

nickthegreat

i know not to get on the wrong side of these people (its why i don't want to lie), its just unfortunate that he doesn't care enough and has plans to ditch the place anyway

i'm kicking myself for not doing something about it earlier, or looking for somewhere else..... kind of feel like i've dug myself a bit of a hole....

Ruthy1604

I work in payroll for a smallish company and tbh I would never see the cv of a new starter, and i certainly wouldnt bother comparing records if I did. The p46 does not have any previous tax/ pay details on it - so you should just honestly tick the most relevant box. As long as you are not applying to a very small company with one person doing all the admin, you'll be fine.

As for the HMRC questioning how you have been supporting yourself, that's a separate issue. I'd think they'd have easier cases to target, but who knows!

Ruth