P60 and tax credits

Loubietoubs

I work for family business part time. I have done for the last 18 months. I am also a single mum and I receive working tax credits because I work over a certain number of hours a week. We have to renew our tax credits and tell hmrc how much we made in the last tax year, by 31st July. Usually I use my p60 to tell them, however, after two months of chasing, I still haven’t received this. Checking my personal tax account I can see my employer has submitted a much lower figure than my actual figure of how much I earned over that year. It was correct at one point, then it was amended for reasons I do not know! If I were to submit this figure, it would be clear I would not qualify for working tax credits as I obviously wasn’t working enough (which I was). 

So can anyone advise what I can do? Speak to ACAS? How can I make my employer give me my p60? I have explained all this to my employer. There has been mistake after mistake the whole of my employment with them, with payslips being wrong, them not providing payslips at all etc. I’m really getting sick of it and now if hmrc think I didn’t qualify for working tax credits, they are likely to tell me I need to pay them back. If they do this, will my payslips (which I am still missing a couple of) be enough to prove I did earn the correct amount? 

Thanks in advance. 

Robbie64

Do your payslips show cumulative (year to date) pay as well as pay earned in the relevant pay period covered by each payslip?

Loubietoubs

No, they don’t. 

poppy12345

In a previous thread you said you were furloghed, is that correct? https://forums.moneysavingexpert.com/discussion/6228149/furloughed-a-second-time#latest

If so have you taken that into consideration? HMRC introduced special rules to allow those temporary changes in working hours. See link. https://revenuebenefits.org.uk/tax-credits/guidance/how-do-tax-credits-work/and-coronavirus/

Loubietoubs

Yes I was furloughed partially, but I can’t see how that makes a difference. Unless I’m completely missing something? Maybe I’m panicking over nothing, but I still earned 8x more than they have me down to have earned on my personal tax account. Regardless of if I was furloughed or not, I still should have been issued a p60 on time. Even if I took off the furlough pay I received, I still earned a lot more than they have declared. 

Icequeen1

Loubietoubs said:

Yes I was furloughed partially, but I can’t see how that makes a difference. Unless I’m completely missing something? Maybe I’m panicking over nothing, but I still earned 8x more than they have me down to have earned on my personal tax account. Regardless of if I was furloughed or not, I still should have been issued a p60 on time. Even if I took off the furlough pay I received, I still earned a lot more than they have declared. 

you are right, that is a problem. I would say if you have the payslips and your bank statements, then you can show how much they paid you. I would also contact HMRC's PAYE department and tell them that the PTA account is wrong and leave them to investigate. Do your best to add up what you have actually been paid and declare that for tax credits. 

Edited to add: You might want to speak to a welfare rights adviser or one of the tax charities. If there is underpaid tax and national insurance then they could ask you for it. See https://taxaid.org.uk/guides/taxpayers/tax-for-employees/problems-with-employers 

Loubietoubs

Thanks icequeen. I don’t know if I should quit whilst I’m ahead with this business. I can’t afford the accounting to be wrong every month, which it is. It’s stressful and I don’t want to risk hmrc trying to claim money back later down the line because of their mistakes. Just don’t know what to do. 

Icequeen1

Loubietoubs said:

Thanks icequeen. I don’t know if I should quit whilst I’m ahead with this business. I can’t afford the accounting to be wrong every month, which it is. It’s stressful and I don’t want to risk hmrc trying to claim money back later down the line because of their mistakes. Just don’t know what to do. 

I think even if you leave now, you will need to address the historic issues as you will have to explain to tax credits your correct figure and i guess you might want some certainty that your correct tax and national insurance has been paid (might you be missing contributions?)

Loubietoubs

Probably. That’s what I mean by quit now, so I don’t have years and years of these mistakes. I think that’s the best bet. Which is really sad because I love the job. Thanks for your help.