Someone I work for asked me a while ago to fudge his wages to show a higher pay, for a mortgage which I refused to do. He then got his dad who owns the business to give him a wage rise to show higher earnings.
Where do I stand with knowing about the fact that this is going on and he will be paid nothing for a while to correct the wages once he has the mortgage. I have also been asked for a blank P60 form which I refused and to set his wageslip up in excel which I refused. When I went in today he had managed to fake a wage slip but put my name on the bottom as prepared by and if there are any problems with the figures to contact me.
Sowhat I need to know are the legal implications of frauding a mortgage company and how I can protect myself from blame.
Just spoke to ACAS and they said the same thing, if I don't report it I'm implicated even through being the one that does the payroll and unless I've shown myself to be countering the fraud I'll go down with them. I keep umming and arring and thinking they won't get caught so no problem, then I keep thinking that mortgage fraud is a hot topic at the moment and earnings are very transparent and a lender can ask HMRC to see earnings as from Julyish 2011.
I'm gutted as I was really enjoying the job but I can't trust them to do the right thing and as far as I can tell fraud can carry a custodial sentence.
Until the wage is subsequently lowered, you only have a suspicion that is what will happen, so a ML report might be in order. You cannot inform the son or father or warn them that is what you're going to do. I think that will cover you from being implicated.
As for forging your name: that is stealing your identity, and the boss should take that seriously enough to stop his son from using the forgery.
It's reported now. I believe the wage will be lowered as he can't afford to keep paying him that amount.
In fairness I thought his Dad would flip his lid which is why I told him, he actually half backed him up, tried to make out that it's not a problem then said he would get him to forge another slip without my name on, although I can't possibly believe that now. They are the sort to cover themselves. I have to remember that they don't give a monkeys about me and watch my own back.
Keep a diary of it Steve just incase it back fires later on.
Not a good situation to be in.
I guess you will be job hunting then?
PS I know someone who did this, hes the Director of a very small Ltd company and he employs one person. Anyway he boosted his own wages to get a large mortgage, they requested a letter to prove what he was on, so he made up a letter and signed it by another name, the mortgage company phoned up his so called accounts department and he pretended to be that person, and hey ho he was granted the mortgage! Now he is in Financial difficulty as business has dropped off! This was a few years ago when it was easier to get a mortgage, but it doesn't pay to do it as now hes struggling big time! I was really shocked when he told me what he had done, and I knew the person who suggested that he did it which shocked me even more!
-- Edited by Amanda on Wednesday 20th of June 2012 12:18:17 PM
-- Edited by Amanda on Wednesday 20th of June 2012 12:25:01 PM
Yep keeping an eye on the job market. He was at it again today, I caught forging a P60, which is plain stupid as the HMRC have that information.
But they wouldn't be using it for that purpose. The person they were showing the P60 would not be able to go to HMRC and verify the information.
This reminds me of something that happened about ten years ago. I was using those handwritten pads you used to get for wages for a restaurant. One of the employees needed a payslip for three or four weeks to claim for something or other. They told her a handwritten payslip wasn't any use as anyone could just write in any details they wanted. She came back to me with this info. I "created" a payslip in Excel and printed that out. I should point out the information I put on the payslip was the correct information. That was deemed acceptable - despite the obvious fact that anyone could create it themselves.
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Never buy black socks from a normal shop. They shaft you every time.
I thought a mortgage company could ask hmrc for earning related information.
I thought they could to. I remember there used to be a framed letter in an Accountants reception we used to deal with. Think was from the Abbey rejecting someones mortgage because the payslips didn't stack up to p60.
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Tony
Responses are intended as outline only. Formal advice should be sort from your Institutes Technical Department or a suitably qualified Accountant.
I didn't think they were allowed to - Data Protection Act and all that - but if they suspect fraud they can. I don't think they're allowed to apply to HMRC for every mortgage application.
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Never buy black socks from a normal shop. They shaft you every time.
I think it has a much higher risk attached to it now, hence why I want to completely distance myself from it. I just find it shocking that people such as myself can be put in a situation like this, why don't mortgage lenders or advisors apply direct to the people responsible for wages, miss out the applicant unless they are a sole trader.
What about setting up on your own now Steve, now you have some experience behind you?
I keep thinking about it and it's something I'd love to do, but what with family and plans for the house etc we both need a steady income, plus I don't as yet feel overly confident in my abilities, I get by and the bookkeeping I do now seems fine, it's just such a vast jump for me.
