Ive just seen a post on here in a similar vein but relating to Directors. My query is a little different!
Ive just taken on a company that was only set up in about April. They had a member of staff working for them for a couple of months and they paid him on (what can only politely be described as) the basis of the net figure he had been paid in a previous job. He has since left and is working elsewhere.
So the newco have paid no tax and NI for this person/clearly not reported it/not issued a P45 although the wages paid are showing on the company Bank statement
Any ideas of how best to sort this one?
(I'm just setting up the PAYE scheme for the new staff)
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Can anyone help? Im thinking he should phone HMRC and hold his hands up but he is not the most forthcoming of people and as he is a newco is running round like a headless chicken trying to get to grips with his business, so if I asked him to I dont think he would!
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
I have just taken on a payroll with similar issues -old accountant ran payroll deducted tax etc but it seems they were never registered for paye-I have suggested they ring HMRC for best way to deal with last tax years deductions then I can move forward with current year
Too right Sharon. Although in this case Im the first book-keeper dealing with this one, but unfortunately it was done about 2months before I started. Im trying to work out if it was the owners complete naviety/being too busy with the rest of setting up his business, or if he is just trying to diddle the taxman! Either way I dont think he will sort it, hence why Im wondering how to deal with it. Im hopefully seeing him this week and may just sit next to him whilst he makes the call to HMRC!
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
thats a good idea- I am doing this one as a 3rd party agent so I cant be with them when they phone but hopefully they will sort it out for me.
I think on most cases it is purely naivety rather than intentional but in my case they had a previous accountant who advised them they didnt need to register!!
I think I would definately ask HMRC for advice to cover yourself, and if you are the new agent and authorised then i'd ring and check myself on their behalf. but has the employee actually asked for the P45? If the employee was only their a couple of months, could that employee actually be classed as self employed, in which case you could class as expenses. and just set up the new payroll for the other staff. . If you have all the details of the previous employee then you could just set it up, sort out the payslips and send the employee the P45. (it really depends what the employee has actually said to the employee and if he still has contact). I would check with employer to see how the land lines, and set it up up correctly from now on. It may be that the ex employee is actually waiting for it and doesnt like to ask for it, so I'd check all the facts, check with HMRC but as long as you do what you can, and do it correctly from now on, you cant be reponsible for the previous bookkeeper. Cover your own back and if the new client doesnt do things how you want then put a disclaimer to cover yourself, but then just do it correctly from now on.
Hi Lainy
Great suggestions. In my case the ex employee has not asked for his P45 but he definately wasnt self employed. This newco effectively bought part of the business from someone else. The employee had worked for the previous owner for 12mths and was taken on by the new one to continue doing the same job - unfortunately they had a fall out so he just left! He received no payslips nor P45, just a rough calculation of his net pay!! I only know this as I was book-keeper to the original business, who then recommended me to the new business although he thought he didnt need a book-keeper ....until months later when his VAT was late!!!!!!! If I had been taken on in the first place his payroll wouldve been set up and correct!! Now Im left with the mess to sort out, although Im not yet registered as his agent and think he needs to sort out any fines/late payment interest before it gets any worse.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
