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Shall I report to HMRC?

Hello, I need some advice for an issue I am having.
I moved in the UK in June 2014 to start working in my current company.
Right from the start I didn't get any contract neither payslip, but I always have been getting paid £300 weekly cash in hand.
When I questioned my employer if it was right to do that, he said that it works better as I get money instantly and he also added they are paying taxes for me, as I have given them my NIN (only issued in November 2014, for my own interest, otherwise my employer wouldn't even have asked for it).
I've been given my payslips only in April 2015 and my p60 in April 2016, together with all payslips for 15/16, not once a month/week as it should be.
Not knowing how legislations work in the UK, I''ve always trusted what he has been saying, I didn't think he would be acting illegaly, even though the numbers on the payslips were a it concerning (declaring a salary of £6.50 an hour gross).
Just now, after gathering some information online and from some friends, I am pretty sure I should report this, as last week for the first time I also received a letter from HMRC with my tax year summary, and the gross amount stated is £12650, which is not only less than what I really am getting (£15600 net, so about £19000 gross), but also way under the minimum, working out at £6.08 an hour for a 2080 yearly hours a job like mine consist of.
Would you suggest me reporting my employer to HMRC? I know for a fact that basically everyone working in this company have the same issue, as they get paid cash in hand weekly.

Thank you in advance

Replies

  • xylophonexylophone Forumite
    40.8K Posts
    Part of the Furniture 10,000 Posts Name Dropper
    Forumite
    It is up to you to be sure that your income is correctly declared to HMRC and that you are paying the correct amount of tax on it.

    https://www.gov.uk/government/publications/your-charter/your-charter
  • Sign up to your online personal tax account, that will show what information HMRC are aware of.

    There is a difference in being paid cash and being paid cash in hand. There is nothing wrong with being paid cash as long as tax and nic have been correctly deducted.

    If your employer hasn't been declaring your income and tax details correctly and has failed to pay NMW then yes of course you should report them.
  • As i said, it's a cash in hand situation, because £300 (net, being cash payment) times 52 weeks is £15600, when on my P60 and tax summary it says £12650 gross, so about £11700 net.

    I am asking advise as I wouldn't want to end up having to pay the difference myself, even though I don't think it would be the case, not being self employed, but my employer should be paying and get investigated.
  • Nico92 wrote: »
    As i said, it's a cash in hand situation, because £300 (net, being cash payment) times 52 weeks is £15600, when on my P60 and tax summary it says £12650 gross, so about £11700 net.

    I am asking advise as I wouldn't want to end up having to pay the difference myself, even though I don't think it would be the case, not being self employed, but my employer should be paying and get investigated.

    As I suggested then, check your personal tax account and if incorrect, report them for failure to pay NMW and failure to operate PAYE. Is there a PAYE ref on your P60?
  • Yes there is a PAYE reference.
    Everything is in order, the only problem is that they are not declaring the right amount of my wages/income and they are paying taxes for a much lower income, which is also under the minimum
  • Also, I forgot to mention, on each and every of my payslips the payment method is BACS, when I am clearly not getting paid by BACS, there is no payments whatsoever from my employer on my bank account transaction history, but there is cash in transactions every week, which I kept all receipts for from 2014.
    Is there any way my employer could be doing all of this legally?
    It would sound crazy to me seeing I never signed any contract, and they are paying taxes, but declaring a wrong amount, so I am definitely employed with them.
  • Just contact HMRC, then you can stop guessing if they are doing it right or not
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