Income tax question

[shero101]

I have started a new job with a small company as an employee (not self employed) and am paid my gross salary each week in cash. I understand this will be a short term practice but how would my National Insurance and income tax be paid whilst I am receiving my pay in cash ?

[shero101]

Actually I have just found some info on this on the internet and will raise the issue with my employer as there may have been a mix up.

[buildersmate]

Too right there must have been a mix-up. No employer is not allowed to do this. HMRC just doesn't permit it. You should be on emergency coding and having income tax and NI deducted from the very first paydate. No exceptions - it's part of what an employer has to do.

[shero101]

Thanks for your reply buildersmate. That is exactly what I thought and why I am worried.

[Skyline D]

You are sure it's your GROSS salary that you're receiving?

There's nothign per se wrong with being paid in cash. Lots of people still are having been properly taxed on it before receipt.

[shero101]

I assume it is gross as it matches the total amount of salary I was expecting before deductions and on the statement it just shows the total amount without detailing NIC and tax.

[pink-kittens]

do you earn enough to pay NI and Tax?

[shero101]

pink-kittens may have a good point there. The basic is very low and my commissions haven't been paid yet.

[tamborine]

The first �95 of weekly income is tax free the rest liable is 33% deduction but subject to any allowances for you.

If an employer pays you gross income - run with it - as he will have to settle your tax & NI himself.

[filthiestfis]

wait wait Tamborine. Are you saying that the employer is responsible for your tax and national insurance contributions are paid to inland revenue?

[Tom Braider]

wait wait Tamborine. Are you saying that the employer is responsible for your tax and national insurance contributions are paid to inland revenue?

In T's absence: yes! If an employer fails to deduct and pay to HMRC any tax and NIC due from an employee, that employer is held responsible and will have to pay ALL the missing contributions, plus interest and maybe a penalty as well. I wouldn't reccomend shero lets it ride, though. It might be alleged that he or she was colluding in the failure.

(Even if there's nothing to deduct, the paperwork should still be done; shero should be getting a payslip that shows the correct taxcode and a nil figure for deductions. )

[shero101]

Thanks all for your comments. Certainly like opening a can of worms here but I have leanrt a lot about something that in previous jobs I have taken for granted. I will play it cool for a while as it should sort itself out. The thing is I feel vulnerable as I don't want to rock the boat as I am extremely grateful to have the job in the current marketplace.