Sorry for some of the vagueness, but we don't have have all?

[puddles]

Sorry for some of the vagueness, but we don't have have all the details, I just want to get some things clear in my head before we speak to my wife's boss.

My wife started a new job as a hairdresser in a salon on Tuesday. She didn't discuss how wages were paid before starting and just assumed it would be the way it has always been - into her bank account, minus tax and NI. Yesterday, first day, her boss said she is paid weekly in cash or cheque.

When wife came home I said that sounds like she has to sort out payment of own NI and tax. She texted boss who said as she has child in full time education her NI stamp is done and as her wages are so low she doesn't fall under PAYE.

First off, I wasn't aware of anyone being eligible to not pay NI because of having a kid at school - that would include half the population and I know I pay NI! Secondly, she will get around £235 a week, which is above the lower earnings threshold for tax.

She went into work again today and questioned this, and her boss said that she's talk to accountant about NI. On the tax, she says they put the minimum through the books and she'll get the rest cash in hand. Now to me that sounds like she's suggesting my wife not declare those earnings fr tax and that they won't, as a company, either.

This all sounds very odd as the woman who owns the business is a really nice and seemingly upstanding woman and the business is thriving and very much in the public eye.

Have I got this all wring or are there some very fishy tax practices going on and being suggested? We will be asking for all money to go through the books or that we will declare the excess ourselves. I also want her to get payslips that state the full amount of her wages.

Any help would be much appreciated.

[puddles]

Apologies for the title of the topic not displaying properly, it should have read: Employer suggesting not declaring wages for tax? Not sure what happened

[bd6759]

It is fishy.
The cash in hand side of earnings (the amount over and above the PAYE records) is a clear indication that not all of the business takings are going through the books.
Your wife will need to tell HMRC that she has received income that has not been fully taxed. The better news is that if she does that, she is telling HMRC that she not complicit in the arrangement, and therefore she cannot be held liable for unpaid tax. It is an employer's responsibility to account for the correct tax and nic, and if they don't they are liable to make good the shortfall as long as the employee was party to the arrangement. However, your wife has a responsibility to inform HMRC.

All women with schoolage children are credited with NIC contribuitons by the State if they are not working or not earning enough to pay NIC. They are not exempt from nic.

[puddles]

Thanks for the reply, much appreciated