no payslip and received big PAYE debt...is my boss not paying my contribution taxes and National Insurance Num

Question

I always had doubts, because i never received a payslip, but today 2 bailiffs from HM Rev & Customs came saying that there is outstanding PAYE debt to be paid within 5 days... I cannot believe they did not pay my taxes for all this time... Do you think there is another possible explanation for it before I start talking?

My boss asked me for my P45 at the time of the employment, but having failed to received it from my previous employer for post related problems, I have asked the new boss to fill P60 instead, but she never gave it to me. I know i should have asked her beforehand, so it is also my fault... thank you everybody, you are very helpful...

Answer 1

Who has HMRC called on - you or your employer? It sounds like it was your employer and it sounds as if he hasn't been paying over your deductions. Its the employer's liability, so you don't need to worry.
Your employer is legally obliged to give you a payslip showing tax and NIC deductions, so that in itself is an offence.
Suggest that if you are going to talk to HMRC, you do it off your employer's premises.
EDIT: if it is you they have come to for the tax and NIC, things have moved on - surely you would have received something from HMRC before now?

Answer 2

First and foremost did the baliffs identify themselves as from the Revenue did you see their warrant cards? The Revenue do not just turn up out of the blue, they ALWAYS issue a warning letter first.

The Revenue do not have baliffs (they sometimes ask baliffs to remove goods) but for first contact they do not employ baliffs, they are called distraint officers and they MUST identify themselves as such.

Secondly, a distraint officer would NOT under most circumstances approach an employee of a company for unpaid PAYE and National Insurace contributions. And you should have had a distraint warning letter first.

Are you sure it is for unpaid PAYE and NIC contributions, or what is more likely to be the case for unpaid taxes and Class 2 NIC contributions from self assessment. In this case then it is you that is liable.

Thirdly, all employers by law MUST provide payslips showing how much you have been paid and what deductions have been made and then show your take home pay. A payslip must be provided for each pay period, whether weekly, monthly whatever. Also they MUST provide a P60 after the end of each tax-year. If you have not had these then it is your employer that is in the wrong and you could do yourself no harm but to report the fact to the Revenue.

Did the people that called on you leave any paperwork, a letter showing the amount of debt and what future action would be taken. If they did not then I think you have had a bogus call, report this fact to the nearest tax office.

If the call was genuine and they actually spoke to you they would have carried out a levy (list goods against which they will remove usually in 6 days time to be sold at public auction)which you should have signed. If they did not speak to you direct they would have left a letter.

If they did leave a letter contact the telephone number on the letter urgently and get an explanation as to what this is all about.

I find it extremley doubtful that this is a PAYE problem, more like a self assessment problem if this is the case contact the Revenue urgently to avoid further escalation of the case.

Answer 3

chances are he hasn't...

ok firstly know you are not to blame but shame on you. if you had your doubts you should have demanded your payslips ( if its a large company you should have contacted HR) or threaten to report your employer to inland revenue.

legally you are entitled to recieve a payslip which a summary of your pay and deductions
you also recieve a p60 which a summary of your pay and deductions over the previous financial year.
if you didnt have a p45 your employer / payroll department/manager should have asked you to fill out a p46 which s/he knows and will recieve from inland revenue every year.

but dont worry if you genuinely believed your employer was paying your deductions then its him they should be after. and if necessary inland revenue will investigate him

not sure what will happen though if he was paying it but at the wtong amount chances are you will have to repay it and this is normally done by altering your tax code so you pay more everytime you get paid and wont affect your nic deductions unless those havent ben paid either

the only other possible other explanation i can think of is if you were self employed and didnt notify IR and so didnt pay your PAYE and maybe NIC

dont want to sound harsh but if you dont know your rights you're as good as having none

hopefully your employer doesnt do a runner with all that money so you may be able to sue for damages

Answer 4

First of all, don't panic; this can be sorted out, but the tax offices are usually fairly slow and so wrapped up in their own red tape that things slip through the net (I was denied 7 years of junior tax credits until I proved I'd been a student for that time, and this took ages - I worked in London and my Tax office was in deepest Wales, go figure!).

Secondly, you need to get to the bottom of this. If you've never had a payslip, then you might have a problem. For the most part, bosses who pay cash in hand expect to avoid the usual taxes paid on employees and likewise the employees avoid paying tax too. This is illegal. You need to try and remember if you've ever given your boss your previous form P45, or if you filled out a P60 in lieu of this. Either way, the contributions should be your employer's responsibility, so they bailiffs should really be bothering him, not you.

For future reference, ALWAYS make sure that your place of work is going to give you a payslip with your earnings, whether they go to your bank account or however you receive them. You need to be able to refer to them for this sort of thing.

The best things you can do now are to call the tax office for a full report of the situation; it may not be as bad as you think. Secondly, go to your boss and ask him what provisions he has made for NI contributions, tax etc for you, and if he wriggles out of the conversation you will need to get some sort of professional assistance. The Citizen's Advice Bureau should be able to offer you some advice, though you may need to think about legal support too.

Just a thought, if you've had bailiffs call, then I suggest you move EVERYTHING valuable out of where you're living (store it with friends or family) because they will remove anything they need to recoup the lost value, and they're used to people being reluctant. Put your PC somewhere safe for starters, stereo, car, MP3 player, any technology or equipment you might miss. Either that or pay up the cash (if you can) and deal with the red tape at tax office when they have stopped baying at your door.

You'll get it sorted, good luck!

Answer 5

I dont know why the bailiffs came to you, your on PAYE its not your responsibilty to pay tax & NI its your employers! Speak to your Inland Revenue office they will be able to help. The problem is, this is HM Revenue & Customs you are dealing with you may have to pay the debt even though its not your fault and sue your employer for the money.

Answer 6

go to ur tax office and see how much you have earned to be taxed on, over the last few years, u should have a P60 for end of each year? if not you have been working illegally

Answer 7

It will not be your problem because you are protected so long as you believed you were paying deductions you are ok.