Employer Not Paying Paye Or Tax For Employee

[mightyquin]

My friends daughter 23yo, has been working for local shop for last 4/5 months,at less than average wage per hour for 30+ hours per week. She has asked her employer why they are not using paye system and tax deduction system in her case, but always gets an evasive reply.eg. "we,ll sort it out later".She loves her job, but not with the current set up, what can she do, as she is in a dilemna

[ToraToraTora]

Contact the IR immediately, sounds very dodgy to me.

[Buenchico]

I suggest contact HMRC in a way that simply expresses concern for getting your own tax affairs straight, rather than appearing to criticise your employer.

e.g: "I am currently employed by Arkwright's Store and, as tax isn't deducted directly from pay, not making appropriate payments to HMRC. I wish to remedy this matter but, as I understand it, I am not eligible for registration as a self-employed person. Please advise me as to the correct course for me to follow in this matter".

Keep a copy of your letter and then, if your employer complains that you've 'dropped him in it', you can show him that you were simply seeking to ensure that you stayed on the correct side of the law.

[Peter Pedant]

Good draft letter from BC
sounz good to me

[Prudie]

What does she earn though? You don't pay tax in general if annual income is less than £10,000

[ToraToraTora]

doesn't matter if she pays tax, it still needs to go through the PAYE to avoid bigger problems later.

[Peter Pedant]

yeah but they should be paying NICs shouldnt they ?

Not in the OP - but is it possible to pay one and not the other ?

[boxtops]

You still need to be registered though, for the taxman to confirm that you don't have to have tax and NI deducted. The coming end of the tax year would be a good time to contact HMRC, as she can always tell them that she's wanting to be sure that she doesn't get a tax bill in next tax year and wants to sort it out for herself.

[New Judge]

More relevant than the income tax, NI currently kicks in at £153 per week. So unless your friend's daughter is being paid well below the minimum wage (which of course in itself is illegal) NI is payable at 12% on any amount earned over that sum. In addition the employer is also required to pay 13.8% on the same amount. Furthermore these deductions are not made on a "cumulative" basis as Income Tax is. NI is due on every weekly or monthly salary payment and is not refundable should the employee only work part of a year.

Sounds like a call to HMRC is required - urgently.

[EDDIE51]

By law she must get pay slips and the totals paid must be on them with the tax and NI deductions shown. Does she get pay slips and what do they show?
At 30+ hours a week she has to be paying tax and NI.

[Forestmangazza]

If its an independent - raise with a solicitor - usually free for first 1/2 hour consultation
if its a multiple - raise a formal grievance - they have to listen to your gripe

[fiction-factory]

I don't see any need to involve a solicitor, Forestmangazza, or to raise a grievance.

[fiction-factory]

mightyquin- when you say "less than the average wage" is that what you mean- or did you mean less than minimum wage? Does she get payslips? If there is no payslip after all this time then she could raise a grievance but the employer may then simply dismiss her with no reason having to be given