PAYE muddle

[Im a BusyBee]

Not sure what to do about this one: its a close relative been working all last tax year and still there now but never has a payslip no P60 either, has letter of engaement confirming they are employee. as once self employed i complete self assesment form each yr for them. i said no payslips is illegal i was told i was worrying too much. now his boss says no tax has been paid for last 3 yrs(his accountant was left to do everything) and his accountant has properly screwed him and he has no choice but to go bankrupt. obviously more to this as who would sit back and let this happen. my question is how does this person stand with regard to the tax and ni he was told all year by his boss has been paid and actually hasnt? there is no tax to put on form - wil he be the loser ? can he do anything now to help himself?

[Tom Braider]

http://www.hmrc.gov.uk/manuals/echmanual/ECH22 150.htm

"An employee is always entitled under Regulation 185 of the PAYE Regulations, to treat as deducted any tax that the employer was liable to deduct whether or not that tax was actually deducted."

Check with HMRC