Employer question

revealhowifeel

My friend's employer seems to be not paying tax on their behalf.

No contract was given for the role which is office-based.

On the wage slips there is no PAYE number or tax being shown to be deducted in fact the wage slip looks fake almost.

The tax office called her and wondered "are you working as you're not on job seekers and you're not paying tax?"

As no contract my friend can leave when she likes but if she did she is concerned they would not pay her.

Can anyone offer advice and confirm if this company are playing by the rules?

LittleVoice

revealhowifeel wrote: »

My friend's employer seems to be not paying tax on their behalf.

No contract was given for the role which is office-based.

On the wage slips there is no PAYE number or tax being shown to be deducted in fact the wage slip looks fake almost.

The tax office called her and wondered "are you working as you're not on job seekers and you're not paying tax?" (I've never known the tax office to telephone like that. What triggered this?)

As no contract (There is a contract - evidenced by the fact that she turns up for work and they pay her - ensure the payslips are kept. If she has worked there more than 8 weeks then she should have received written particulars of her employment.) my friend can leave when she likes (No, she can't leave when she likes if she has worked there at least a month, as she appears to be an employee and therefore needs to give a week's notice)but if she did she is concerned they would not pay her. She would be entitled to pay for the work she has done. If she left without giving notice, the employer could legally seek payment from her of any excess costs in relation to getting her work done, that is the difference between what they would have paid her and what they pay someone else.

Can anyone offer advice and confirm if this company are playing by the rules?

We can't say whether the company are "playing by the rules" as we don't have enough information about her position.

What paperwork did she complete when joining them? Did she provide a P45 or complete a P46? Has she claimed any JSA since 6 April 2012? Has she worked anywhere else since that date? How long has she worked with the current employer?

revealhowifeel

Apologies:

Student loans company wrote to her to say "we've been notified by HMRC you're not longer employed or in receipt of any taxable benefits" and sent her a form to fill in to confirm her working situation asking for work payroll number and PAYE details.

paddedjohn

Is she earning enough to pay tax?

McKneff

What are her earnings?

Presumably she is not paying NI either.

revealhowifeel

paddedjohn wrote: »

Is she earning enough to pay tax?

She is on min wage and this is her first job in this country in almost a year.

Gets £196 per week which works out at £5.60 per hour after "tax". 35 hours per week

revealhowifeel

She also submitted a P45 to them when she started.

paddedjohn

If she hasn't earned anything in this country so far this tax year then she won't have to pay any tax till after April

LittleVoice

revealhowifeel wrote: »

She is on min wage and this is her first job in this country in almost a year.

Gets £196 per week which works out at £5.60 per hour after "tax". 35 hours per week

Who is describing it as "after tax"?

Unless she is under 21 £5.60 is less than minimum wage.

As she is earning over £146/week, she should be paying NI.

revealhowifeel

LittleVoice wrote: »

Who is describing it as "after tax"?

Unless she is under 21 £5.60 is less than minimum wage.

As she is earning over £146/week, she should be paying NI.

My friend is. Min wage is £6.19 but the wage she gets equates to £5.60 which indicates tax is being taken off, which is the issue as the it seems the employers aren't paying tax and other bits.

And she hasn't worked in the UK for approx 10 months before this job as she worked/lived abroad.

revealhowifeel

Just been confirmed they're paying her £5.60 ph.

She has been told by the tax office that her tax code is correct, i.e. she is not being emergency taxed. She has also been told she is not entitled to pay tax as is earning min wage (min wage being £6.19), therefore it would seem her employers are not declaring she is an employee and are paying her below minimum wage.

What should she do?