Suspended for Employer Not Paying Tax - Please Help

[Magpie101]

Hello,
I'll try to keep this brief, but would hugely appreciate any help or advice people could give me. Started at a new company who employed 2 other people and employed on the understanding that I was a permanent employee.
In chronological order of events, 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
- 1 month later, no contact and paid directly into my bank account via fast track payment with tax and national insurance deducted, but no payslip
- 1 week after above date 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. Asked if I could read overnight
- NEXT DAY - withholding of wages until contract signed. 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 has got me no where, they have even told me to sue them! (This is also recorded).

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??
FYI this all happened on Friday 8th July.
*Any* help or advice would be relished! Thank you.

[Magpie101]

Re: Suspended for Employer Not Paying Tax - Please Help

Sorry, forgot to add - as well as having a weeks pay missing from last pay on Friday (June to July was a 5 week working month) and assuming that I have been sacked (again, this is unclear!) am I also entitled to receive accrued holiday pay despite not signing a contract? Another reason for not signing was the 22 days annual leave entitlement within the contract with no mention of bank holidays in addition. I was told that I could have BHs off but this wasn't in writing so I asked for the contract to be amended in light of this, and was then disciplined and suspended for asking! My working hours were 8AM -5.30PM Monday to Friday. Thank you in advance

[davec1960]

Re: Suspended for Employer Not Paying Tax - Please Help

Hi Magpie

It looks like your post hs been missed, click and report your original post and ask a mod to move it to the employment forum.

You are correct that you have accrued holidays and these should be based on 28 days pa not 22.

Regarding the unpaid tax/NI, checking a week after you were paid was pointless as it wasnt overdue so your employer had done nothing wrong. Your employer could be on a quarterly payment basis or monthly and this will determine when the tax/NI is due to be paid to HMRC.
Did you have some concerns about the company that caused you to check with HMRC?

[Kati]

Re: Suspended for Employer Not Paying Tax - Please Help

[MENTION=77627]Openlaw15[/MENTION] ... any advice??

[Openlaw15]

Re: Suspended for Employer Not Paying Tax - Please Help

Hello,
I'll try to keep this brief, but would hugely appreciate any help or advice people could give me. Started at a new company who employed 2 other people and employed on the understanding that I was a permanent employee.
In chronological order of events, 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
- 1 month later, no contact and paid directly into my bank account via fast track payment with tax and national insurance deducted, but no payslip
- 1 week after above date 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. Asked if I could read overnight
- NEXT DAY - withholding of wages until contract signed. 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 has got me no where, they have even told me to sue them! (This is also recorded).

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??
FYI this all happened on Friday 8th July.
*Any* help or advice would be relished! Thank you.

By law you must be paid the equivalent of the national minimum wage (NWM). So, you're only owed 1 week's wages? What was the pay rate meant to be either before or when you accepted the offer of the job? What were the terms of the contract applying to these things also? it may well be that the employer has paid the tax monthly. Once you accept a job there is automatically a contract. You're entitled to holiday pay by law. I would make contact with ACAS with a view of taking it to a tribunal at least for the 1 week's pay loss. Normally you need 2 years working for an employer but if the employer has not followed the law or procedure, you may be able to take them to a tribunal, ie not paying either NWM or not paying you the week's wage you're owed. The employer's defence could be you were employed to do your job, not pester them about tax queries, in addition to the employee (you) blatantly refused to sign the contract, ie unreasonable. ACAS could help you reach a settlement with the employer for the wage losses and holiday pay, before a tribunal is needed. It sounds likely that the employer will pay as it's not worth them defending a claim just for these small amounts.

[charitynjw]

Re: Suspended for Employer Not Paying Tax - Please Help

[MENTION=87954]Magpie101[/MENTION]

What are you seeking?

Reinstatement? (ie ending the suspension & back to doing the job)

Getting out with your back pay, etc & a reasonable reference?

Something else?

[Magpie101]

Re: Suspended for Employer Not Paying Tax - Please Help

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. 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. 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?

[ostell]

Re: Suspended for Employer Not Paying Tax - Please Help

You don't need a P45 to start a new job, the employer's instructions for a new starter give what to do with no P45. It's basically start on emergency code, which is the same as a normal tax allowance.

You should still be able to sign on without a P45, or have you tried and been refused?

A specialist lawyer will be very expensive.

[Magpie101]

Re: Suspended for Employer Not Paying Tax - Please Help

Hi ostel,
Thanks for your reply. I'm not eligible to sign on for JSA because of no national insurance contributions!! It is NI based. And as my employer failed to pay this for me, and has failed to provide me with a P45, I can't sign on. And I can't provide a reference as at the moment all communications must go via their solicitor. To be honest, and I am not blaming anyone on this forum as everyone has been helpful with their replies, this whole issue has left me quite depressed. Why is it the law acts in favour of the employer and not the employee? I have done absolutely nothing wrong; I began and continued to work for my employer in the good faith (and legal requirement) that anything and everything to do with my payment of salary was done properly, legally and legitimately. It wasn't, I raised my concern and I was sacked. And yet it would appear that I don't have a leg to stand on, despite no wrong doing on my part! This isn't a matter of how I feel, or finger pointing, or saying"oh poor me, this is SO unfair", but the law is the law, and my employer deliberately decided not to abide by it. If the issue with my pay etc. was simply a mistake or an oversight on their part, I would understand and hence not even be on this forum (!) but it wasn't; it was deliberate and calculated. Please tell me realistically what my options are. Kindest regards in advance

[ostell]

Re: Suspended for Employer Not Paying Tax - Please Help

Is this your first job and therefore you have no prior NI contributions? Do you not get JSA based on previous contributions? Or is this a statement by the ill informed staff at the job centre?

[Magpie101]

Re: Suspended for Employer Not Paying Tax - Please Help

Hi ostell, this isn't my first job. I was out of the country for 18 months prior to getting back into work, with this being my first job since back in the UK this. Therefore there haven't been any tax or NI payments since before I left. I called the job centre after applying online, and I was told since there haven't been any tax or NI payments AND I don't have a P45 I'm not eligible as there's no proof in those terms that I was employed. The fact that these should have been paid / supplied is (predictably) none of their conconcern. In your opinion and if you were me, what would you do overall? What are my options regarding this whole thread? Thank you in advance

[charitynjw]

Re: Suspended for Employer Not Paying Tax - Please Help

Hi Magpie101

Have you been sacked, or are you suspended?
& if the latter, with or without pay?

[Magpie101]

Re: Suspended for Employer Not Paying Tax - Please Help

Hi Charitynjw,

I am now sacked. I have been told I'll receive pay that was owed to me prior to sacking (I was paid 4 weeks pay instead of 5 on the day I was suspended), 1 week notice, 1 week's pay while suspended and accrued holiday. All of this probably won't be taxed. However I don't believe them that I will be paid, and above all, my main issue is that I was sacked just for enquiring and then asking that my employer pay my tax! Records show that they still haven't. Do you think I should just let it go? Or try and do something about it? Do you think it's worth it?

[des8]

Re: Suspended for Employer Not Paying Tax - Please Help

Whilst you may not have sufficient NI contributions to claim JSA, you may be able to claim Income Support.
https://www.gov.uk/income-support/how-to-claim.

JSA can be claimed without a P45.
the benefit is paid in fortnightly arrears, and the paperwork can be submitted later.
At least that used to be possible.

[charitynjw]

Re: Suspended for Employer Not Paying Tax - Please Help

Hi Charitynjw,

I am now sacked. I have been told I'll receive pay that was owed to me prior to sacking (I was paid 4 weeks pay instead of 5 on the day I was suspended), 1 week notice, 1 week's pay while suspended and accrued holiday. All of this probably won't be taxed. However I don't believe them that I will be paid, and above all, my main issue is that I was sacked just for enquiring and then asking that my employer pay my tax! Records show that they still haven't. Do you think I should just let it go? Or try and do something about it? Do you think it's worth it?

IMHO

As long as all is paid up to date for everything owed, if it were me I would put it down to experience & move on.

You may have a case for automatically unfair dismissal, as the employer doesn't seem to have followed a fair & proper disciplinary procedure (no advanced warning & not giving you the right to be accompanied to the disciplinary meeting).
However, the median award for unfair dismissal is about £7k (so many awards will be much lower), & as things stand it costs about £1200 to go to Employment Tribunal.
A poor return considering the months of stress involved in conducting a claim if you are a litigant in person.
& that's if you win.
An alternative would be to submit a Grievance Procedure (which you can do even though you've been dismissed) citing the unfair treatment, the denial of your statutory rights re a companion & the withholding of wages (if still appropriate).
You could use this as a lever to get your money & possibly a decent reference. (ie, you drop the grievance in return for the money & reference).
As a last resort, withholding wages is classed as wrongful dismissal & can be pursued through County Court; you have longer to initiate a claim (6 years......though the sooner the better) & it is much cheaper than ET.