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Suspended for Employer Not Paying Tax - Please Help

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  • Suspended for Employer Not Paying Tax - Please Help

    Hi everyone,
    I'll try to keep this brief, but would hugely appreciate any help or advice people could give me.
    In chronological order of events with some extra info, my issues are as follows:
    - Started work beginning of May 2016 with a brief email from new employer outlining my basic pay, probation period and start date as a permanent employee
    - 1 month later, no contract and pay was directly paid into my bank account via fast track payment with tax and national insurance deducted, but no payslip
    - 1 week after above date I called HMRC to check if tax and national insurance has been paid - no it hadn't
    - 4 weeks and 4 days after above pay date told to sign contract on the spot. I asked if I could read it overnight
    - NEXT DAY - withholding of wages until contract signed. This was also pay day. I asked about tax etc. being paid, was told it hasn't been (I recorded full conversion as proof). I refused to sign contract until basic salary was paid and I could be given x2 payslips. Within a few hours I was taken for a disciplinary meeting and suspended for A) relations breaking down on my part (i.e. questioning my contract and tax) and B) my general performance (they day before I was given my contract to sign I had had a review and was told I was working well).
    - I was then offered a new job after the meeting for a partner company which I declined. I've had no written confirmation that I am either suspended or sacked, and instead of receiving 5 weeks pay I've only had 4, which was paid after the meeting. Contacting the company since has got me nowhere. If I am dismissed then I'm also owed 5 days accrued holiday as well as 1 weeks work. As I have no documentation regarding termination of employment, tax paid, payslips etc. I can't even sign on.

    So: tax and national insurance not paid by employer, employer admits this but makes no effort to pay it, no payslips, suspended for not signing contract and querying above AND no paperwork for suspension/dismissal - WHAT DO I DO?? Do I have the grounds for a tribunal?
    This all happened on Friday 8th July.
    *Any* help or advice would be relished! Thank you
    Tags: None

  • #2
    Re: Suspended for Employer Not Paying Tax - Please Help

    Hi Magpie101 & welcome to LB.

    A strange set of circumstances!

    Imho, you should submit an official grievance asap, outlining your concerns & mentioning that the circumstances around the disciplinary meeting gave you no time to arrange a suitable companion.

    By highlighting the latter, you are asserting your right to be accompanied as per s10 Employment Relations Act 1999.

    Dismissal under these circumstances could then be automatically unfair, & the usual 2 years qualifying period may not apply.

    If it were me, I would contact ACAS, &/or if in a union, the union rep.
    CAVEAT LECTOR

    This is only my opinion - "Opinions are made to be changed --or how is truth to be got at?" (Byron)

    You and I do not see things as they are. We see things as we are.
    Cohen, Herb


    There is danger when a man throws his tongue into high gear before he
    gets his brain a-going.
    Phelps, C. C.


    "They couldn't hit an elephant at this distance!"
    The last words of John Sedgwick

    Comment


    • #3
      Re: Suspended for Employer Not Paying Tax - Please Help

      Tax and NI would not show up immediately at the tax office, it depends on the period the company is using to file the payments.
      Lack of payslips is a worry though.

      Comment


      • #4
        Re: Suspended for Employer Not Paying Tax - Please Help

        Hello everyone and thanks for your replies. I accidentally posted this elsewhere as I was a newbie, and have included my responses below to the kind folk who offered me advice (on this tread as well as the other (I hope this is OK?).

        Firstly, thank you to Charitynjw and ostell for your replies.

        Charitynjw - Fortunately, I was allowed to bring in a witness so that box is ticked and I have now contacted ACAS for early conciliation regarding the whole matter. However, it has all taken a nasty turn, please see below (you are also mentioned below as you responded to my misplaced thread which I had filed in a post under the wrong section).

        Ostell - no tax and NI has been paid, please see below. I also received what HMRC think is a 'fake' payslip too, please see below:

        This is taken from my mis-placed post on the Legal Beagle's forum which regards the same issue as above:

        Hello everyone and thank you for your replies.

        There has been a significant update since my last post, but before I mention that, I'll reply to each of you who have so kindly offered me advice:

        Davec160 - I frequently checked with HMRC as I did have suspicions about the company, and the company constantly boasted about tax avoidance and this is what initially made me think that something was awry. Having checked again last week, after my employment had been terminated (see below) there are still no tax and national insurance payments that have been declared. This was reported, and since I received a payslip in the post which had the wrong pay date and the wrong method of payment stated. There was also no PAYE employee ID number on the payslip, and HMRC have asked me to send this to them in it's original format as they suspect that it is a fake.

        Openlaw - I suspected and then became aware that my NI and tax wasn't being paid, but I hoped that allowing 8 week to get this sorted was reasonable and giving my employer adequate time to rectify this. My 'pestering' was polite and done privately to my manager who is also director of the company; I only raised this twice in a 48 hour period (after being issued with x2 different contracts for x2 different companies and being told my pay would be withheld until I signed the said contracts) and then I was taken to a disciplinary meeting immediately after raising this for a 2nd time on the grounds of 'lack of trust'. I was then suspended pending an investigation to look into my issues with statutory rights, and I then had my employment terminated 4 days later, via email, with no meeting to discuss their findings. They were deducting my tax and NI, but hadn't registered with HMRC *at all* - which they admitted - so they couldn't pay me via PAYE. And now, as my employment has been terminated, I have no P45 because they haven't registered with HMRC which means I can't sign on, or start a new job until I have my P45.

        I have now started an early conciliation with ACAS, who have told me I have adequate grounds to take this further, and they are due to contact my ex employer this week. However, in the meantime, I have had a solicitor contact me on behalf of my ex employer threatening me that if I do take this further, they will make me pay for their client's costs. I have not told my ex employer that I wish to escalate this to an employment tribunal, but I have told them that I have been advised to do so and am considering my options. ACAS say I have valid grounds to take this higher, and I think this solicitor is trying to scare me off from taking things further - or is he right? Any advice is much needed!

        Charitynjw - I'm seeking justice! I am not the only one with this problem with the said company, but I am the only one who is trying to assert and defend my statutory rights. I don't want my job back as it would be very difficult considering the circumstances. They still haven't registered with HMRC for the back pay of my tax and NI, they didn't pay me through PAYE (and so 'pocketed' my tax and NI), they didn't give me payslips (but have since issued me with just one bogus slip to 'shut me up'), they threatened me with withholding my pay, they sacked me for raising these valid concerns, and now they are threatening me via a solicitor despite me not saying that I have decided to contact ACAS. I can't name the company, but it is well documented online that they often use scare mongering tactics to frighten people into paying up, and that they don't always abide by the law.

        So to summarise, I had concerns about my tax and national insurance not being paid, I asked if it was being paid after waiting just short of 5 weeks after my first pay day, and was told that no it hasn't "but it's in an account if HMRC want to take it". They didn't register with HMRC to pay employees via PAYE and instead paid us through Fast Track with the tax and NI deducted but not paid. They didn't give us payslips, and when they have, the info was completely wrong, see above. I raised my concern professionally and privately, and ultimately was sacked because I dared to question my employer about some of my most basic employee rights. I'm still missing payslips and have no P45. I am now being threatened by a solicitor. What do I do now? Should I be speaking to a specialist employment lawyer on top of ACAS?

        Comment


        • #5
          Re: Suspended for Employer Not Paying Tax - Please Help

          Originally posted by Magpie101 View Post
          Hello everyone and thanks for your replies. I accidentally posted this elsewhere as I was a newbie, and have included my responses below to the kind folk who offered me advice (on this tread as well as the other (I hope this is OK?).

          Firstly, thank you to Charitynjw and ostell for your replies.

          Charitynjw - Fortunately, I was allowed to bring in a witness so that box is ticked and I have now contacted ACAS for early conciliation regarding the whole matter. However, it has all taken a nasty turn, please see below (you are also mentioned below as you responded to my misplaced thread which I had filed in a post under the wrong section).

          Ostell - no tax and NI has been paid, please see below. I also received what HMRC think is a 'fake' payslip too, please see below:

          This is taken from my mis-placed post on the Legal Beagle's forum which regards the same issue as above:

          Hello everyone and thank you for your replies.

          There has been a significant update since my last post, but before I mention that, I'll reply to each of you who have so kindly offered me advice:

          Davec160 - I frequently checked with HMRC as I did have suspicions about the company, and the company constantly boasted about tax avoidance and this is what initially made me think that something was awry. Having checked again last week, after my employment had been terminated (see below) there are still no tax and national insurance payments that have been declared. This was reported, and since I received a payslip in the post which had the wrong pay date and the wrong method of payment stated. There was also no PAYE employee ID number on the payslip, and HMRC have asked me to send this to them in it's original format as they suspect that it is a fake.

          Openlaw - I suspected and then became aware that my NI and tax wasn't being paid, but I hoped that allowing 8 week to get this sorted was reasonable and giving my employer adequate time to rectify this. My 'pestering' was polite and done privately to my manager who is also director of the company; I only raised this twice in a 48 hour period (after being issued with x2 different contracts for x2 different companies and being told my pay would be withheld until I signed the said contracts) and then I was taken to a disciplinary meeting immediately after raising this for a 2nd time on the grounds of 'lack of trust'. I was then suspended pending an investigation to look into my issues with statutory rights, and I then had my employment terminated 4 days later, via email, with no meeting to discuss their findings. They were deducting my tax and NI, but hadn't registered with HMRC *at all* - which they admitted - so they couldn't pay me via PAYE. And now, as my employment has been terminated, I have no P45 because they haven't registered with HMRC which means I can't sign on, or start a new job until I have my P45.

          I have now started an early conciliation with ACAS, who have told me I have adequate grounds to take this further, and they are due to contact my ex employer this week. However, in the meantime, I have had a solicitor contact me on behalf of my ex employer threatening me that if I do take this further, they will make me pay for their client's costs. I have not told my ex employer that I wish to escalate this to an employment tribunal, but I have told them that I have been advised to do so and am considering my options. ACAS say I have valid grounds to take this higher, and I think this solicitor is trying to scare me off from taking things further - or is he right? Any advice is much needed!

          Charitynjw - I'm seeking justice! I am not the only one with this problem with the said company, but I am the only one who is trying to assert and defend my statutory rights. I don't want my job back as it would be very difficult considering the circumstances. They still haven't registered with HMRC for the back pay of my tax and NI, they didn't pay me through PAYE (and so 'pocketed' my tax and NI), they didn't give me payslips (but have since issued me with just one bogus slip to 'shut me up'), they threatened me with withholding my pay, they sacked me for raising these valid concerns, and now they are threatening me via a solicitor despite me not saying that I have decided to contact ACAS. I can't name the company, but it is well documented online that they often use scare mongering tactics to frighten people into paying up, and that they don't always abide by the law.

          So to summarise, I had concerns about my tax and national insurance not being paid, I asked if it was being paid after waiting just short of 5 weeks after my first pay day, and was told that no it hasn't "but it's in an account if HMRC want to take it". They didn't register with HMRC to pay employees via PAYE and instead paid us through Fast Track with the tax and NI deducted but not paid. They didn't give us payslips, and when they have, the info was completely wrong, see above. I raised my concern professionally and privately, and ultimately was sacked because I dared to question my employer about some of my most basic employee rights. I'm still missing payslips and have no P45. I am now being threatened by a solicitor. What do I do now? Should I be speaking to a specialist employment lawyer on top of ACAS?
          ACAS will only offer you general legal advice as they're not qualified lawyers. They will not tell you how strong or how weak your case is (ie the merits), therefore. If the opponent believes your case is weak, and if you have no lawyer representing you could have legal costs against you up to £20,000 if you lose your case. It's not as easy as you think it is. You will likely have a preliminary hearing (1st hearing to discuss the prospects of your case) - will probably be asked to pay a deposit - before you even have a full hearing. My opinion is don't rush into a tribunal. You didn't even complete the usual 3-6 month trial period in your employ. I can't see exactly what you've lost, obviously apart from the week's pay and holiday.

          Tax avoidance may be immoral but it's not illegal. Tax evasion is both immoral and illegal.

          Comment


          • #6
            Re: Suspended for Employer Not Paying Tax - Please Help

            Hello Openlaw, thank you for your swift response. Would my employer tax issue be considered as evasion or avoidance considering that to date nothing has been paid? Also, what do you think my ex employer is 'up to' having a solicitor contact me out of the blue when I haven't told them that I wish to contact ACAS? They know I've asked HMRC about if my tax has been paid, but that is all. I have not issued any threats about anything; action to be taken or reporting unpaid tax, so as far as they're concerned I just disagree with their decision to sack me - why get a solicitor to threaten me? Please advise!

            Comment


            • #7
              Re: Suspended for Employer Not Paying Tax - Please Help

              Originally posted by Magpie101 View Post
              Hello Openlaw, thank you for your swift response. Would my employer tax issue be considered as evasion or avoidance considering that to date nothing has been paid? Also, what do you think my ex employer is 'up to' having a solicitor contact me out of the blue when I haven't told them that I wish to contact ACAS? They know I've asked HMRC about if my tax has been paid, but that is all. I have not issued any threats about anything; action to be taken or reporting unpaid tax, so as far as they're concerned I just disagree with their decision to sack me - why get a solicitor to threaten me? Please advise!
              The employer is probably trying to foresee things that you could potentially do ie take them to a tribunal, I think. It may be a scare tactic but you may well lose your case with the effect that you're far more worse off than were before, ie costs type orders against you. So, they're likely advising their lawyers in advance. ACAS is legally the first process to settle before reaching a tribunal. Tax avoidance is to legally avoid the payment of taxes, more likely benefitting from existing laws which protect businesses (ie tax avoidance schemes). Tax evasion is illegal. Just be careful is my opinion, as they may try to take legal action against you for defamation especially if they're paying taxes legally albeit tax avoidance.

              Comment

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