Payroll query and unpaid wages

MrEnquiry

Hello, I have a question about payroll and unpaid wages.

Essentially my ex employer submitted to HMRC my PAYE based on the amount of information from my payslips.

However this ex employer owes me a substantial amount of money (in the £1000s). The PAYE submissions he made do not reflect what I actually received and give HMRC the impression I was paid in full. He has done the same thing with a number of ex employees from the same company.

My questions:

1. Is this legal?
2. As I did not receive the full value of my earnings am I entitled to claim tax back from HMRC for overpayment?

Thanks!

MrEnquiry

Sorry, just bumping this a bit. Apologies if it's bad practice but could really do with your advice.

I should point out that I do not believe this to be a mistake by the ex employer. A (probable) deliberate act to give HMRC the impression that I with other staff paid in full when we were not.

Savvy_Sue

I'd do two things: contact HMRC and ask their advice. And issue a claim for unpaid wages. Presumably you can demonstrate from bank statements that what's on those does not tally with your payslips.

MrEnquiry

Hi Savvy Sue - I have done both these things already, and can prove with bank statements etc. HMRC contacted the individual, who basically ignored their request to supply amended PAYE.

Ja7188

Just to be clear, the figures that have been submitted to HMRC match those on your payslips, but this figure doesn't match what you were actually paid - is that correct?

MrEnquiry

Hi Ja7188

Yes that is correct.

Ja7188

Assuming you've already contacted your former employer to point out the "mistake" (even though you're pretty sure it was deliberate), I guess all you can do is make things formal as per the above. I may be wrong but I believe there may be a time limit between you leaving their employment and taking action against them so you may need to move fast!

MrEnquiry

Hi Ja,

Thanks for the reply. Yes I had begun legal proceedings a couple of years or so back but they're ongoing unfortunately.

Is it illegal to supply such payroll to HMRC knowing money is still owed to staff? Would it be fraudulent if HMRC believed the staff were being paid when they weren't, with misleading accounts such as this which gave the impression that everything in the company was OK when it wasn't?

Ja7188

I'm no legal expert but I'd have thought this is massively illegal on two counts - breach of their contract with you by failing to pay you as agreed and secondly by reporting false information to HMRC. I'm not sure how they could get away with ignoring queries from HMRC - seems very odd!

jonnygee2

Is it illegal to supply such payroll to HMRC knowing money is still owed to staff? Would it be fraudulent if HMRC believed the staff were being paid when they weren't, with misleading accounts such as this which gave the impression that everything in the company was OK when it wasn't?

It would be fraudulent to submit misleading limited company accounts, certainly, but submitting incorrect payroll information and submitting misleading accounts are two slightly different things. HMRC don't police when or what staff get paid.

If it's a very simple 'you are owed x amount' then I'd make the claim through a county court rather than ACAS, ACAS don't actually have the power to enforce the claim anyway. Do it online https://www.moneyclaim.gov.uk/web/mcol/welcome

comeandgo

No, it's not illegal. Your employer is owe you money. Chase them for it.