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Where Taxpayers and Advisers Meet

not paid taxes in ten years. help

peterjones2014
Posts: 2
Joined: Wed Mar 19, 2014 11:05 pm

not paid taxes in ten years. help

Postby peterjones2014 » Wed Mar 19, 2014 11:15 pm

I've been working for a company for around ten years and never paid any tax. I want to get it sorted but don't know what to do. When I started I was on 120 a week and I'm now on 200 a week. I am "employed" but was paid cash in hand. What can I do?

bd6759
Posts: 3068
Joined: Sat Feb 01, 2014 3:26 pm

Re: not paid taxes in ten years. help

Postby bd6759 » Thu Mar 20, 2014 1:15 am

If you want it sorted, be prepared to find another job. HMRC will chase your employer for the PAYE tax and NIC that they have not paid over.

peterjones2014
Posts: 2
Joined: Wed Mar 19, 2014 11:05 pm

Re: not paid taxes in ten years. help

Postby peterjones2014 » Thu Mar 20, 2014 1:27 am

Well I do want to go self employed as a builder and get everything sorted. I know it's partly my fault for letting it get this far but I've just been burying my head in the sand.

wamstax
Posts: 1861
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: not paid taxes in ten years. help

Postby wamstax » Tue Mar 25, 2014 3:05 am

If you are truly employed then it is the responsibility of the employer to operate PAYE and HMRC would pursue them for the tax and interest (and potentially a penalty) for failing to operate PAYE. Of course on £200 per week you would be paying £5 per week income tax but the National Insurance would be just over £6 per week for employees NIC. Of course you could always bring matters to a head by asking for your form P60 for the year ended 5th April 2014 shortly after that date and see what they say.
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website

bd6759
Posts: 3068
Joined: Sat Feb 01, 2014 3:26 pm

Re: not paid taxes in ten years. help

Postby bd6759 » Wed Mar 26, 2014 12:08 am

The problem with the PAYE regulations in this respect is that they often state what an employer must do, such as Reg 67:-

67.—(1) Before 1st June following the end of the tax year, an employer must give a certificate (Form P60) to every employee

However, there is no sanction if they do not do this. You can ask for one, but if they don't give you one there isn't much you can do except approach HMRC who may take the failure to be indicative of other problems where a penalty can be imposed. Of course, we already suspect that there is a failure to account for PAYE tax, and you will tell them that as well.

As I said, your employer isn't likely to keep you on if you report them, but you will have a remedy through an employment tribunal who could grant you compensation or damages.

Lambs
Posts: 1418
Joined: Wed Aug 06, 2008 3:15 pm

Re: not paid taxes in ten years. help

Postby Lambs » Wed Mar 26, 2014 7:57 am

Where the employer wilfully fails to deduct / apply PAYE and the employee is aware (and has therefore effectively knowingly participated), liability for that tax may be transferred to the employee under either of Regulations 81 (4) or 72 (5). That scenario would seem to apply here.

Regards,

Lambs

wamstax
Posts: 1861
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: not paid taxes in ten years. help

Postby wamstax » Wed Mar 26, 2014 10:28 am

Of course it is also possible (though unlikely in the scenario given) that the agreement was that you would get the net Cash In Hand with the employer picking up the tab for the taxes and National Insurance etc.

You really need to get this sorted out as if you become unemployed etc where are you with Social Security benefits etc.
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website


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