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  • FIRST POST
    • FeeshFace
    • By FeeshFace 9th May 18, 9:43 PM
    • 3Posts
    • 1Thanks
    FeeshFace
    5 contracts for 1 job
    • #1
    • 9th May 18, 9:43 PM
    5 contracts for 1 job 9th May 18 at 9:43 PM
    Evening everyone,

    My wife was employed at a laundromat for a couple of weeks, but she signed five contracts for one job - the laundromat owners also have other laundromats in the local area which correspond to the contracts, however my wife only worked in the one the entire time she was there.

    As a result of this peculiar arrangement, she's paid basic rate tax on four of the payslips, but no NI on any. I understand that BR tax is automatically put on second (or third, fourth and fifth!) employment, but I question the morality, and possibly the legality, of paying tax on a minimum wage job which should clearly be under only one contract of employment, and comes well under the personal tax allowance.

    I understand that having signed on the dotted line she may have no leg to stand on, but even if there is nothing she can do to get back this tax, is there a reason why this business would have done this at the expense of my wife's pay?

    (She left the employment after such a short period after they refused to pay for a 'trial week' and ignoring her request point blank, a blunt letter saying it was unacceptable, and ACAS will be getting notified if payment wasn't forthcoming ended up on their desk. The day after she was quietly ushered out with all the pay she had earned during the whole duration of her employment and asked not to come back.)

    Thanks in advance for any advice or thoughts
Page 1
    • jobbingmusician
    • By jobbingmusician 9th May 18, 11:07 PM
    • 19,316 Posts
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    jobbingmusician
    • #2
    • 9th May 18, 11:07 PM
    • #2
    • 9th May 18, 11:07 PM
    I *think* (but I am not an expert) that your wife could resolve this fairly easily by filling in a self-assessment tax return, so that her overpaid tax would be returned to her. What I would suggest she does in any case is to contact HMRC, who are generally very helpful with people who are upfront with them.

    Self assessment would be really simple for her - it would just need the final payslip or P45 from each job, or a joint P45 if they issued one. It might even be that her tax will wing its way back because someone at HMRC realises what's happening (I mean that someone might realise about the BR code being used even though the total earnings are below the tax threshold) but I wouldn't rely on this. I would contact them ASAP and see what you can do to reclaim this money.
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    • antrobus
    • By antrobus 9th May 18, 11:23 PM
    • 16,197 Posts
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    antrobus
    • #3
    • 9th May 18, 11:23 PM
    • #3
    • 9th May 18, 11:23 PM
    ...

    As a result of this peculiar arrangement, she's paid basic rate tax on four of the payslips, but no NI on any. I understand that BR tax is automatically put on second (or third, fourth and fifth!) employment, but I question the morality, and possibly the legality, of paying tax on a minimum wage job which should clearly be under only one contract of employment, and comes well under the personal tax allowance.

    ....
    Originally posted by FeeshFace
    Peculiar? I'd call it tax evasion. Or even simpler, fraud.

    Nothing for you wife to worry about. It's the owners that have the problem.

    Report the little bleepers.
    https://www.gov.uk/government/organisations/hm-revenue-customs/contact/reporting-tax-evasion
    • aife
    • By aife 10th May 18, 12:39 AM
    • 196 Posts
    • 168 Thanks
    aife
    • #4
    • 10th May 18, 12:39 AM
    • #4
    • 10th May 18, 12:39 AM
    Are you sure the basic rate tax wasn't just because it was a new job and they hadn't sorted out her correct tax code ?
    Either way the contract thing sounds dodgy - if an employer wants someone to work across different sites they usually just put a clause in the contract , no need for multiple contracts.
    I'm a bit confused as to what they're getting out of this . The only thing I could think of is maybe they've got somebody else working off the books and want a 'phantom' staff member to cover this , but surely it would be easily spotted ?
    Whatever it was about , she really needs to contact HMRC asap
    • Savvy_Sue
    • By Savvy_Sue 10th May 18, 1:58 AM
    • 39,134 Posts
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    Savvy_Sue
    • #5
    • 10th May 18, 1:58 AM
    • #5
    • 10th May 18, 1:58 AM
    the lack of payment of NI is not such a concern, because it doesn't work the same as tax which is added up across all jobs. NI is payable for every pay period in which you earn more than the threshhold - around 100 per week - and isn't refunded if you then earn a lot less the following week.

    Sounds like she's well out of there, but hope she can resolve her tax issues.
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    • Xbigman
    • By Xbigman 10th May 18, 6:09 AM
    • 3,146 Posts
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    Xbigman
    • #6
    • 10th May 18, 6:09 AM
    • #6
    • 10th May 18, 6:09 AM
    The owners are committing fraud. They probably rely on gullible staff thinking they (the staff) are saving on NI when in reality they are not accruing any NI benefits, like the state pension, which is a false economy.
    The employers gain by not paying employers NI and not having to auto enrol anyone into a pension. They should be reported immediately.


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    Eat properly
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    • FeeshFace
    • By FeeshFace 10th May 18, 8:46 PM
    • 3 Posts
    • 1 Thanks
    FeeshFace
    • #7
    • 10th May 18, 8:46 PM
    • #7
    • 10th May 18, 8:46 PM
    I'm going to contact HMRC for her tomorrow and we'll see what they say. I'll update here for anyone who's interested as I'm sure it can't be an isolated occurrence, and I couldn't find anything useful via Google.
    • FeeshFace
    • By FeeshFace 20th May 18, 9:34 AM
    • 3 Posts
    • 1 Thanks
    FeeshFace
    • #8
    • 20th May 18, 9:34 AM
    • #8
    • 20th May 18, 9:34 AM
    Phoned up HMRC who didn't seem hugely interested in the contract situation, however a 102 tax refund is winging my wife's way which is almost entirely from contracts 2-5 being taxed at basic rate. I then got sent over to the NI helpline...who were closed, very helpful! Chances are some NI is owed which will dent the tax refund, oh well!

    By virtue of where I work, we have an HMRC rep who is much less uninterested, so that avenue maybe much more fruitful, or at least informative.
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