Should I get paid for my holiday

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NHAcount

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Sep 6, 2013
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Where do HMRC say that? My understanding is that it is the employer's responsibility to operate PAYE correctly and that the amount paid to the employee is always treated as being net of deductions, which are the employer's responsibility to pay to HMRC.

It's actually a little bit of both! Yes, employers have a responsibility to operate PAYE correctly but employees also have a responsibility to ensure that the look after their own tax affairs - this includes through employment. As an example, a company a worked for a few years ago had an employee who also had pension income. Due to an error in the use of his tax code he was "under taxed". When HMRC discovered this they wanted the tax paid by him, through his tax code.

Neil
 
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It's actually a little bit of both! Yes, employers have a responsibility to operate PAYE correctly but employees also have a responsibility to ensure that the look after their own tax affairs - this includes through employment. As an example, a company a worked for a few years ago had an employee who also had pension income. Due to an error in the use of his tax code he was "under taxed". When HMRC discovered this they wanted the tax paid by him, through his tax code.

Neil

If the employer used the tax code they were given then they have operated PAYE correctly so would not be responsible for tax that had been underpaid.

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NHAcount

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Sep 6, 2013
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If the employer used the tax code they were given then they have operated PAYE correctly so would not be responsible for tax that had been underpaid.

Sent from my GT-P1000 using UK Business Forums

But that's my point, it was error in the use (er's use) of the tax code. The employee was trying to defend his corner with ignorance, but HMRC were having none of it.

HMRC will judge each case on its own "merits" and I'm not saying it will automatically fall on one party or the other to sort the situation but stepping back and ignoring the issue now could just cause problems further down the line. At the very least the OP needs to know if the employer has/hasn't been paying theor NIC and income tax. If there is an issue discovered later, HMRC will probably just adjust their code to compensate.

Neil
 
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Merchant UK

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Aug 15, 2010
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www.welderfab.co.uk
So if the employee knows its cash in hand, and knows the employer isn't going to pay any tax or national insurance, who's fault is it?

Your responsible for your own taxes.

Exactly the employee would be seen as being self employed ;) Thus responsible for their own tax and National Insurance payments, therefore the question of Holiday Pay is not relevant
 
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Newchodge

Business Member
Nov 8, 2012
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Newcastle
Exactly the employee would be seen as being self employed ;) Thus responsible for their own tax and National Insurance payments, therefore the question of Holiday Pay is not relevant

This is just not right.

An employer has a legal obligation to deduct appropriate tax and NI and account for them to HMRC for every employee. If there is no employment relationship, ie because the person is a self employed contractor, then there is no obligation and the responsibility is the contractor's. You cannot be self employed without knowing it. There are pretty clear definitions of what is self-employment. Working in someone's chip shop is not going to be considered by HMRC as self employment. The OP says he has received payslips, even if he is worried about their format. It is therefore entirely the employer's responsibility to ensure that deductions are made and payments sent to HMRC. And the OP is entitled to paid holiday.
 
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Chris Ashdown

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Dec 7, 2003
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Regardless of who's fault it is

The employee would have not paid what was due from him and the employer did not pay what he should have as the employers part and combined with the employees part

The employee has had the money and will have to pay it back ether via HMRC or it would be called back by the employer as overpaid wages when HMRC discovers the missing dosh

This all assumes the employer did not make the contributions which we do not know for sure
 
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Merchant UK

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Aug 15, 2010
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www.welderfab.co.uk
Look i think we all know that working near the coast is seasonal and there are loads of businesses that just stay open for just a few months in the holiday season. Staff at these place are Seasonal too and the majority of them do get paid cash in hand. and there's every possibility that the business is not declaring all there staff, especially the seasonal cash in hand ones.
 
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