HMRC - I'm in Trouble I Think

Dummie_2

Hello

I used to own a fish and chip shop. For the first year I had an accountant do everything for me including the PAYE stuff then because it got too expensive, I decided to do it myself.

The business lasted 3yrs and during this time my husband stayed working p/t and I had a total of 5 other p/t staff work for me as well at different times.

I've been filing all the necessary forms for my husband but no one else. The reason for this is because my ex-accountant had only completed forms for my husband during the first year but not for the other p/t staff so I assumed I didn't need to when I took over completing the forms. I just basically kept a copy of the forms my ex-accountant had completed and completed these same forms for the same person (my husband) every year.

Anyway, now one of my ex-p/t staff has informed me that inland revenue is asking him for a P45 and P60 form from me but I don't have it.

Am I in big trouble? I'm so worried. What do I do? Please help.

paulus

If your accountant (or you) got the other part timers to complete forms P46 certifying that this is their only employment AND you have paid them below the PAYE (£5035 in 06/07) and NIC limits you wont need to operate PAYE. You would just show the pay details on any P45/P60. If the part timers didn't sign the P46, you could try to get them completed retrospectively. This would take things to the correct equitable poition, so is unlikely to be taken to be fraudulent. If they can't sign P46 because they had main employment elsewhere you should have deducted tax and may be held liable for it.

Dummie_2

Thank you for your reply. I think it should be OK. I did ask them to sign a P45 at the beginning of their employment and as they were both students, this was their one and only job. I called IR and asked what I was to do with these forms and they told me to keep it. When I sold the business, I threw these forms out (didn't think they were important if IR didn't want them in the first place).

I've now calculated their income for the relevant financial years and it is well under the PAYE limit. I've told them to go ahead and tell IR that they don't have these forms from me and to inform them of their income. Will probably hear from IR soon