Ex employer hasn't paid my tax

shifty_uk

shifty_uk

shifty_uk

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My ex-employer was a bit of a con man, my last place went under as a result of him sinking his other businesses. From what I gather, he's bankrupt and currently on the run after being liable for an absolute fortune and falsifying invoices etc to gain funding. I didn't receive a final pay nor did I receive a P60. My colleagues were in the same boat. There's been countless issues raised with HMRC about him from what I can gather.

Now, as for me... I just received a letter from HMRC stating my tax was essentially not paid properly during my time with the company. They're asking for my P60... which I don't have. I only have one pay slip from my time with the company and obviously bank statements to prove my income which was a post-tax/NI amount.

Where do I stand? Am I up **** creek? :(
 
You could be, technically you are still liable for the tax. To include a positive, I have seen a case go through the First Tier Tribunal where in a similar situation it was decided the employees weren't at fault and they didn't have to pay.
 
I had a similair thing happen in terms of not getting paid and employer disappearing into thin air. Was only two weeks wages I got stiffed out of. Not sure about the tax position of my other pay but no one ever came after me for it
 
You may not be able to, HMRC should have stopped most of their drop in centres now due to staff cuts. Keep a written record as you go, proves you're being a reasonable tax payer!
 
You will be liable for the tax but HMRC will make some arrangement of monthly payments or increase tax level on your current employment until the debt is settled.
 
Hmm my sister had similiar where her employer wasn't paying their (employees) tax and after providing statements and having to make court appearance (sworn testimony or something) for whatever they decided the employer was the one liable and she (and the rest of her colleagues) didn't have to pay anything extra. The company owner went to jail over it though so not sure if that makes any odds.
 
'Harry said:
If you're PAYE shouldn't the company be responsible for the payment of tax?
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I assumed this was the case. After doing a bit of googling, it seems other people share the same views but after reading the posts in here, I'm worried. I only worked with said employer for circa 11 months but still, that's a lot of tax.
 
shifty_uk said:
I assumed this was the case. After doing a bit of googling, it seems other people share the same views but after reading the posts in here, I'm worried. I only worked with said employer for circa 11 months but still, that's a lot of tax.
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I wouldn't stress it myself, but that's because I wouldn't pay it even if taxman said so. PAYE means the company pays the tax and NI. If they don't..not my fault.

That's me though. I'd maybe hit up moneysavingexpert etc for some advice. Maybe some legal advice if in real doubt.

(I'm no expert obv but that's my view)
 
This could be a sticky one - they have asked for the P60 to see what the company were telling you in terms of how much tax they took off you. Without the P60 the HMRC could claim it showed the company took zero tax from you and thus you are liable.
 
Pudney said:
You could be, technically you are still liable for the tax. To include a positive, I have seen a case go through the First Tier Tribunal where in a similar situation it was decided the employees weren't at fault and they didn't have to pay.
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Technically he is nothing like liable for the debt or outstanding liability.

The man who stole the OP's tax contributions and kept them to himself personally, or to run the business, is.

Write back to HMRC explaining what has happened, the PAYE section will be able to identify that your missing tax & NI is working with Debt Management.

Give them copies of everything you hold relating to pay/tax during your employment. Tell them you have done so.

The department will be pressing your employer to conform in terms of compliance, the outstanding PAYE returns submission which should result in a P60. Failing that, inevitably an Insolvency Practitioner will step in at some point if the director has bailed and the business is trading insolvent in any event.

I'm actually unsure as to how you would obtain a P60 before then, or if you could, but I would not worry too much about this shifty. The only come back would be a loss of NI contributions if you had to claim in the future if no dividends are received by HMRC as a creditor.
 
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Biohazard said:
Technically he is nothing like liable for the debt or outstanding liability.

The man who stole the OP's tax contributions and kept them to himself personally, or to run the business, is.

Write back to HMRC explaining what has happened, the PAYE section will be able to identify that your missing tax & NI is working with Debt Management.

Give them copies of everything you hold relating to pay/tax during your employment. Tell them you have done so.

The department will be pressing your employer to conform in terms of return compliance as well which should result in a P60. Failing that, inevitably an Insolvency Practitioner will step in at some point if the director has bailed and the business is trading insolvent in any event.

I'm actually unsure as to how you would obtain a P60 before then, or if you could, but I would not worry to much about this shifty.
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Tell that to HMRC who have taken this scenario to FTT. Odds are it should be alright, but some Inspectors can be downright unreasonable, even going against HMRC internal policy.
 
Pudney said:
Tell that to HMRC who have taken this scenario to FTT. Odds are it should be alright, but some Inspectors can be downright unreasonable, even going against HMRC internal policy.
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It is impossible really to have any conjecture beyond that, it might not even be with an inspector, it could be clerical grades working hoppers.

The vast majority of the debt mountain does not go to tribunal.

The case described, I don't see what tribunal they would have.

HMRC would simply dissolve the company.
 
HMRC took an employee to tribunal after a company didn't pay over PAYE, they didn't lose on the legal side (hence technically Shifty is still liable), they lost as the judge felt HMRC were unreasonable to chase when it wasn't the employees fault. If it hadn't been a while ago I'd find the case for you.
 
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