Employer not paid PAYE

chriz1000

My business partner has recently received letters from the tax office demanding that he declare his earnings for 2004/05. At the time he was employed by a different company which he was a small shareholder of (7%) but wasn’t a director, chairman or company secretary. He was told that they PAYE was being paid on his behalf however this obviously wasn’t the case. He didn’t receive any payslips for that year ether.
The tax office are wanting to know what’s going on. The company he worked for went into liquidation that year. Anyone know is responsible for paying this PAYE?

fengirl_2

Strictly speaking it's the employer's duty to deduct and pay over tax and NIC and, in the case of a dissolved company HMRC can go after the directors.
However, I understand from other posts on here that they do try and go after the innocent employee if all else fails. He should therefore stick it out and maintain his position. Does he have payslips/P45/P60 from this employer showing tax and NIC paid which he can show to HMRC to prove he was entitled to believe his affiars are in order?