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TaxRobin
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Category: Tax
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Experience:  International tax
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There, I have been working small start up for

Resolved Question:

Hi there,
I have been working for a small start up for the past 6 months and about to leave to join a large organisation.
I have not been receiving payslips during this time and have been receiving wages via bank transfer. I have just been informed that my current employer has not been running payroll therefore they have not been paying either my national insurance or income tax.
I have my P45 from my last role earlier this year.
I have been told that my current employer are not obliged to pay either my tax or national insurance until end of the financial year.
How do I ensure I am not liable for the outstanding HMRC payments and what do I need to say to my next employers and HMRC when commencing my new role? I will be paid PAYE in the next role.
Submitted: 1 year ago.
Category: Tax
Expert:  TaxRobin replied 1 year ago.
Hello,Employees pay tax and National Insurance via their employer through PAYE. Employers may deliberately avoid paying payroll taxes to HMRC. Your best evidence as an employee that tax has been paid on your behalf, is your payslip. As you did not receive those you should gather all evidence you have of the payments made to you via bank transfer. If you do not have sufficient evidence, HMRC could treat you as self-employed and expect you to pay any tax due.As an employer running payroll, they should report the employee’s pay and deductions in an FPS on or before their payday (unless an exception applies). They are exempt from PAYE if none of their employees are paid £112 or more a week. They still must keep records so ask for a copy of your year to date pay and tax record. Keep a copy of all written statements from them.By law your employer must give you a P45 .Your new employer must notify the Processing Office of the start of the employment using the new Check List information (it replaced the old form P46). The purpose of the check list is for employers to tell HMRC that an employment has started and what initial tax code is being operated. Your new employer will ask you to complete HMRC’s new starter checklist.Tell your new employer the truth, the old employer did not run PAYE and they did not issue you a P45.
Customer: replied 1 year ago.

Many thanks, ***** ***** context, the company i currently work for is a small tech startup of only 4. Two are directors and two are employees (of which i'm one). To further complicate it - we're colleagues from a previous firm that separated and start a new organisation and I regard them as friends.

It appears that my two friends that own the company have been 'winging' it in the hope that the company became profitable prior to having to do their tax returns next year. I have been offered something else more secure with a large organisation and therefore leaving for the security.

When this was raised last week and the potential implications they have assured me that I am not liable and will document this in any format that I wish. I already have my offer of employment and contract and they are willing to complete and sign something that states they will take care of my tax and NI before the end of the financial year.

They are also saying that they will fund and pay their accountant to complete my self assessment.....

Does this all sound as if it would be okay - or am i likely to fall foul of HMRC?

Many Thanks

Expert:  TaxRobin replied 1 year ago.
You are in a better position than I thought. If they are willing to make all right then you should be fine.You are most welcome.My goal is to give you excellent service.Your positive rating is thanks enough
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 14435
Experience: International tax
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