Furlough pay

Easy71

Hello my daughter is 17 and a waitress at a local restaurant, she is paid cash in hand and works around 20 hours a week but has been told she won’t get any furlough pay as it’s too complicated to work out!!

MattMattMattUK

More likely she will not get furlough because she is paid "cash-in-hand" so is not PAYE and they will be unable to claim as her employment is not legally compliant. 

Atlas234

Easy71 said:

Hello my daughter is 17 and a waitress at a local restaurant, she is paid cash in hand and works around 20 hours a week but has been told she won’t get any furlough pay as it’s too complicated to work out!!

Seems suspicious, as she is being paid cash its quite possible that she is not an official employee on the payroll and they are possibly avoiding paying employers NI  etc by just paying her in cash rather than it actually being too complicated

poppy12345

For her employer to furlough her she must have been on the payroll with an RTI submitted before 30th October. If she wasn't then she can't be furloughed.

I'll never understand people that take these "cash in hand" jobs.

epm-84

Your daughter should be aware if she gets cash in hand with no payslips or P60s then she probably isn't get NI contributions so she isn't building up an entitlement to a state pension or to be able to claim contribution based state benefits if she's unemployed in the future.

Even if she's on payroll then the employer doesn't have to furlough her.  The Chancellor has made furlough available to employers if they want to use it, he isn't forcing them to use it.

bradders1983

Easy71 said:

Hello my daughter is 17 and a waitress at a local restaurant, she is paid cash in hand and works around 20 hours a week but has been told she won’t get any furlough pay as it’s too complicated to work out!!

So your daughter illegally pays no tax on her wages yet you want her to have a taxpayer funded bailout on her lack of wages? 🙄

Jeremy535897

bradders1983 said:

Easy71 said:

Hello my daughter is 17 and a waitress at a local restaurant, she is paid cash in hand and works around 20 hours a week but has been told she won’t get any furlough pay as it’s too complicated to work out!!

So your daughter illegally pays no tax on her wages yet you want her to have a taxpayer funded bailout on her lack of wages? 🙄

If she was on minimum wage she'd have to work about 60 hours a week to pay tax, not 20. At minimum wage on 20 hours a week she wouldn't hit £120 a week. It's not her fault she's not on the payroll. It is her employer's.

bradders1983

Jeremy535897 said:

bradders1983 said:

Easy71 said:

Hello my daughter is 17 and a waitress at a local restaurant, she is paid cash in hand and works around 20 hours a week but has been told she won’t get any furlough pay as it’s too complicated to work out!!

So your daughter illegally pays no tax on her wages yet you want her to have a taxpayer funded bailout on her lack of wages? 🙄

If she was on minimum wage she'd have to work about 60 hours a week to pay tax, not 20. At minimum wage on 20 hours a week she wouldn't hit £120 a week. It's not her fault she's not on the payroll. It is her employer's.

Indeed, she can hardly claim ignorance here though, the OP knew it was cash in hand. You cant have the penny and the bun here. 

macman

Easy71 said:

Hello my daughter is 17 and a waitress at a local restaurant, she is paid cash in hand and works around 20 hours a week but has been told she won’t get any furlough pay as it’s too complicated to work out!!

It's not complicated at all. As she's not officially employed, they can't claim furlough for her anyway. And, if they did, they'd be opening themselves up for an investigation by HMRC which would no doubt reveal that they are not declaring all their revenue. 

epm-84

Jeremy535897 said:

bradders1983 said:

Easy71 said:

Hello my daughter is 17 and a waitress at a local restaurant, she is paid cash in hand and works around 20 hours a week but has been told she won’t get any furlough pay as it’s too complicated to work out!!

So your daughter illegally pays no tax on her wages yet you want her to have a taxpayer funded bailout on her lack of wages? 🙄

If she was on minimum wage she'd have to work about 60 hours a week to pay tax, not 20. At minimum wage on 20 hours a week she wouldn't hit £120 a week. It's not her fault she's not on the payroll. It is her employer's.

Well it would be 53 hours and for 53 hours it would be just £8 tax per year, presuming no other income.  However, NI is the most important consideration, which is still a form of income tax albeit with a different name and if you are working but don't earn enough to pay NI then you may get NI credits.

I think it's also important to check she is getting the full pay and they are deducting tax or NI and then not passing it on to HMRC, as that way she can't get refunded by HMRC if she pays too much in tax.

Jeremy535897

epm-84 said:

Jeremy535897 said:

bradders1983 said:

Easy71 said:

Hello my daughter is 17 and a waitress at a local restaurant, she is paid cash in hand and works around 20 hours a week but has been told she won’t get any furlough pay as it’s too complicated to work out!!

So your daughter illegally pays no tax on her wages yet you want her to have a taxpayer funded bailout on her lack of wages? 🙄

If she was on minimum wage she'd have to work about 60 hours a week to pay tax, not 20. At minimum wage on 20 hours a week she wouldn't hit £120 a week. It's not her fault she's not on the payroll. It is her employer's.

Well it would be 53 hours and for 53 hours it would be just £8 tax per year, presuming no other income.  However, NI is the most important consideration, which is still a form of income tax albeit with a different name and if you are working but don't earn enough to pay NI then you may get NI credits.

I think it's also important to check she is getting the full pay and they are deducting tax or NI and then not passing it on to HMRC, as that way she can't get refunded by HMRC if she pays too much in tax.

OP has already said she works only 20 hours. She will be well below the NI threshold, and below the level to count for NI credits. I don't see a 17 year old waitress standing up to the boss and demanding a payslip. She will just be sacked. It is unfortunate she won't get furlough, but if this was the only job going, at least she got a wage when she worked, as opposed to being unemployed.