HELP Dont think employer is payin my tax

[thegers]

I have worked for a small company for over 4 years now and ive never recieved a contract, p60 or payslip. I get paid cash in hand every week. Years ago this didn't bother me but now that im abit older im getting pretty concerned about this issue. Im worried that ive not been payin tax or NI for over 4 years

I would like to know where i stand in this situation and how to check if my employer has been paying my tax and NI. I dont even know if im on the books. How do i check if im on the books??

As working in a small company i can't ask these issues to my employer becuase i think i will get sacked. In the last year the company has moved address and name has been changed.

 

[sanjiv]

No contract means that they can get rid of you anytime.
You should get a payslip with all payments.
I believe that you get a P60 every year.

It would therefore seem you are cash in hand, no tax no NI.

 

[MASSEY]

Well for one it smells fishy.

You are not blame free in this situation your supposed to recieve a p60 every year. And you have been having cash in hand.

To be blunt i think the book will get thrown at you for tax evasion.

 

[kulture]

How many hours have you been working a week, and how much have you been paid?

What was your understanding of the situation? Did you believe you were being paid after tax was deducted. I.e. that the cash was after tax? It is not an offence to be paid in cash. Do you have any document stating your salary or hourly wage?

Irrespective of not having a written contract, you have employment rights.

 

[Employment Law Clinic]

No contract means that they can get rid of you anytime.

There is an employment contract, albeit nothing in writing. The process for getting rid of an employee is the same for anyone, and the employer cannot get rid of an employee simply because nothing was put in writing.



Karl Limpert

 

[Employment Law Clinic]

No contract means that they can get rid of you anytime.

There is an employment contract, albeit nothing in writing. The process for getting rid of an employee is the same for anyone, and the employer cannot get rid of an employee simply because nothing was put in writing.



Karl Limpert

 

[thegers]

How many hours have you been working a week, and how much have you been paid?

What was your understanding of the situation? Did you believe you were being paid after tax was deducted. I.e. that the cash was after tax? It is not an offence to be paid in cash. Do you have any document stating your salary or hourly wage?

Irrespective of not having a written contract, you have employment rights.

I work 44 hours a week and get paid £300 in my hand after tax. After the company has moved address and name thats why im concerened there is more to it than that. I dont have anything to prove my hours and wage. It Just seems nothing is right anymore. I dont know what to do

 

[Richie N]

Request copies of recent payslips and P60's. If they can't produce these then you need to raise your issues.
You can also contact HMRC to see if a P60 has been filed.

 

[Kernowman]

It's a common misconception that all contracts must be in writing.

An employer must produce a Statement of Particulars including your Terms and Conditions of Employment. If he has not done so he has committed an offence. After 4 years he cannot claim to have forgotten or mislaid it. This is not the same as a signed contract you have both agreed to which would vary from the common practice which is generally accepted as being reasonable.
Cash in hand or not, an employer must provide a wage slip detailing your grossly hourly/weekly/monthly pay, your NI Number and the deduction and the amount of PAYE deducted, both of which should state the amount deducted and the year to date totals, then finally the nett pay after deductions.

So let's see if there are any other indicators you are an employee.

Does your employer allow you time off for fully paid holidays?

If your are off work sick, does he still pay you in full?

Does he give you an "official" lunch break?

Have you ever been subject to a disciplinary issue?

Answering these questions may give us a better understanding of your relationship.

 

[internetspaceships]

Well for one it smells fishy.

You are not blame free in this situation your supposed to recieve a p60 every year. And you have been having cash in hand.

To be blunt i think the book will get thrown at you for tax evasion.

I think you'll find that the blame won't be pointed at the employee but the employer. Even if he tries to make out the guy is self employed it will still backfire on him unless he's got some good paperwork to back it up.

 

[kulture]

I work 44 hours a week and get paid £300 in my hand after tax.

How do you know its after tax. Have you ever been informed of this.

I think the problem here is on two fronts. Firstly the employer may try and say you were self employed. I.e. you were responsible for dealing with the tax etc yourself. If they ever gave you paid holiday, or paid sick leave, then this would eliminate this argument.

You don't say what industry you work in. It may have some bearing. That said, after 4 years continuous employment it would be difficult to consider you other than as an employee.

The company is breaking employment laws by not giving you pay slips and an annual p60. The companies only defence here is to say you were self employed, but this would probably not stand up to HMRC investigation.

The second problem is yours. IF the company can convince HMRC that you are self employed, then you owe tax. I am less sure what happens if HMRC is convinced that you are a proper employee and genuinely believed that you were paid net of tax and NI. Not having any pay slips or P60 weakens your situation. If you had them then HMRC would go after the company for any unpaid taxes etc.

Whatever the situation it is not going to get any better. The more you put it off, the worse it gets. You should contact HMRC and explain your concerns. You never know, you may find that your employer has been paying PAYE and NI and is simply lax at producing the necessary paperwork. What normally happens if you have a year without paying any NI you get a letter from HMRC saying that no NI has been paid for you and giving you the chance to pay it now. It is likely that after 4 years if it wasn't being paid you would have had one letter by now.

 

[E Storey]

I think tribunals case law rules that if someone takes on work cash in hand. (as opposed to being paid cash after tax has been deducted). they are aware that they are not an employee and so refuse them employment rights....

 

[Kernowman]

I think tribunals case law rules that if someone takes on work cash in hand. (as opposed to being paid cash after tax has been deducted). they are aware that they are not an employee and so refuse them employment rights....

That is based upon the assumption that the employee is FULLY AWARE of their employment status. From what I am reading on this thread however, the employee is entirely unsure if he is or isn't an employee and the employer seems to be doing his utmost to obfuscate the situation.

I am hoping the OP will respond to the holiday, sickness, etc., questions to enable us to better see the wood from the trees.

 

[thegers]

It's a common misconception that all contracts must be in writing.

An employer must produce a Statement of Particulars including your Terms and Conditions of Employment. If he has not done so he has committed an offence. After 4 years he cannot claim to have forgotten or mislaid it. This is not the same as a signed contract you have both agreed to which would vary from the common practice which is generally accepted as being reasonable.
Cash in hand or not, an employer must provide a wage slip detailing your grossly hourly/weekly/monthly pay, your NI Number and the deduction and the amount of PAYE deducted, both of which should state the amount deducted and the year to date totals, then finally the nett pay after deductions.

So let's see if there are any other indicators you are an employee.

Does your employer allow you time off for fully paid holidays?

If your are off work sick, does he still pay you in full?

Does he give you an "official" lunch break?

Have you ever been subject to a disciplinary issue?

Answering these questions may give us a better understanding of your relationship.

First of all i work in a car repair garage. Its common for ppl in this trade to get paid cash in hand because of most customers pay cash when getting cars fixed. I get 28 days paid hol a year. Ive never been off sick but im sure he said i would get something like £60 a week off the state if i was ever off sick. I get a 15min break in the morning and a half hour break for lunch. Last of all ive never had a disciplinary issue where i have worked. Hope these answers help

 

[thegers]

Just like to add when i say i get paid £300 after tax. im only saying that because that what my boss told me when i got my last pay rise. He said im really on £400 before tax

 

[Chris Ashdown]

I would suggest you ring up your local tax office quote your NI number and ask for a copy of your Tax code and ask why you have never been sent one

That should get the questions answered, you can plead innocence to your employer as you just imagined they had forgotten you and you were worried about the recent items in the papers about oweing money.

 

[kulture]

First of all i work in a car repair garage. Its common for ppl in this trade to get paid cash in hand because of most customers pay cash when getting cars fixed. I get 28 days paid hol a year. Ive never been off sick but im sure he said i would get something like £60 a week off the state if i was ever off sick. I get a 15min break in the morning and a half hour break for lunch. Last of all ive never had a disciplinary issue where i have worked. Hope these answers help

The answers help enormously. You are an employee and not self employed. It is entirely possible that your employer is actually paying the tax but not so good on the paperwork. Its a shame you do not have anything in writing regarding the comment from the owner that you are on £400 gross and £300 net. (doing a rough calculation in my head its not far out).

As has been suggested, ask for a copy of your tax code etc. If it is determined that your tax is not paid, then don't tell your employer anything. HMRC will investigate and will not bother to say why they did the investigation.

 

[Christine Hough]

Well for one it smells fishy.

You are not blame free in this situation your supposed to recieve a p60 every year. And you have been having cash in hand.

To be blunt i think the book will get thrown at you for tax evasion.

It all depends.
If you thought .. reasonably.. that the employer was paying and deducting properly, it may be up to them to ppay any outstanding tax. I think they are to blame rather than you.

 

[billy buntin]

phone ACAS on 0845 74 74 747 for advice, the employer needs to give you a p60 every year by the 31st May. Employer is running the risk of not operating PAYE correctly, if his annual returns are now wrong he will get fined for late returns for the last 4 years as they were not correct, phone your tax office with your concerns.