I worked for a small building firm for 6 months last year, I left due to a disagreement with one of the managers, I have noticed on inspection that each of my wage slips apart from one for each of those months shows a higher net earnings than I actually received. I checked all the figures and the gross, tax, n.I and net figures are correct on the wage slip to what I should of got, so it looks like less was paid into my bank. what does this mean for me? Will I be chased for tax? Am I owed money? Will I be in trouble with the revenue? I believe it's something to do with new tax allowances as I started in March and quit in August so the tax year changed And the only net payment that matches wage slip is March
The net pay should match what you are paid. Suggest you gather all your evidence - ie payslips versus Bank statements and speak to Acas - free service who will advise and can help as required. First thing Im sure they will suggest is speaking to your old employers - but by putting it in writing so you have an evidence chain.
-- Edited by Cheshire on Wednesday 27th of May 2015 09:01:11 AM
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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
Thanks for the reply, I am not worried about claiming any money I am owed as it only adds to roughly £18/month, I am concerned with any come back on myself, what's the likely outcome in a situation like this?
I worked for a small building firm for 6 months last year, I left due to a disagreement with one of the managers, I have noticed on inspection that each of my wage slips apart from one for each of those months shows a higher net earnings than I actually received. I checked all the figures and the gross, tax, n.I and net figures are correct on the wage slip to what I should of got, so it looks like less was paid into my bank. what does this mean for me? Will I be chased for tax? Am I owed money? Will I be in trouble with the revenue? I believe it's something to do with new tax allowances as I started in March and quit in August so the tax year changed And the only net payment that matches wage slip is March
Thanks for any help you can provide
You asked if you were owed money - so I gave a suggestion based on that. Even if its 'only' £18pm, thats £108 of your money - why would you let someone 'steal' that from you? I didnt answer the chased for tax aspect as you indicated that the tax and NI figures are correct and as you have your wage slip of proof of what they have done/shouldve paid, but my suggestion still stands if you are still concerned ring ACAS and if it was me I would be ringing HMRC as well.
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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
Thank you for suggestions and I will keep them in mind. I left on bad terms and if there was a big amount owed to me I would chase it up as you said, but I am just wondering at this point if there are any comebacks on me? Such as the amount I have been paid being treated as a gross pay because it doesn't match my wage slip or would my wage slip be proof tax has been deducted from my pay packet and the amount to me is what is wrong
From what you've described it is likely that the new allowances from April haven't been been picked up by the wages dept, despite it obviously being on your payslip.
As regards HMRC, again from what you've said, I can't see any reason why there should be an issue, as your payslips show the correct deductions. You can, if you want, ring the HMRC helpline and ask them to send you a summary for the year 2014/15. This will show your gross and tax, and then you can check if it matches your final wage slip. The helpline number is 0300 200 3300
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Hello. Thanks for the quick reply! And the good advice. I am glad to hear that it shouldnt be a problem in terms of hmrc, if I were to think outside the box for a minute and suggest worst case scenario (which is very unlikely) and I sent off for a tax summary and it came back as no tax paid on earnings, would my wage slips still hold up in terms of proof of deduction because of the difference between net amount and actual amount paid? And if so who would be chased for any tax not paid? Sorry to be a pain, essentially I am just trying to get a picture of worst case scenario and what evidence I have in the unlikely event this was to happen just for a little bit of peace of mind.
As long as you can prove that you have had tax/ni deducted from your wages (and payslips/money paid into your bank are proof) then you have nothing to worry about.
Should it come back that incorrect deductions have been made then I would contact HMRC again and point this out. It would then be up to HMRC to investigate the firm concerned.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Interestingly I had a scenario the other way - payslip showed a tax refund - was never paid to employee (who happened to be my son).... well not until a stroppy letter, plus a report to Acas and HMRC who are currently following it up with the said employer (in fact update is due from HMRC this week - cant wait to see that one!)
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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
Let me know how you get on with that, hopefully I should be OK, I just like correct documents and get paranoid about stuff like this, my worst worry was that they would discard my wage slips due to them not matching banking statements, then try to tax my wage again, unlikely I know but you never know.
I wasn't sure where to post this but while on the subject I had a look at my current employers payslips and the net pay is 18p less than I was actually paid? This happened on 4 of the last payslips? Is this a general problem with small employers or something? Is this something to be worried about? I checked the tax and all that seemed to be correct
Will I owe 3p tax on the extra 18p
i recently posted a thread about how my wageslips showed the correct figures (gross, tax, ni and net pay figures) but what went into my bank was less than the net figure by about £17. i have done a little bit of digging and got my p60. It shows the correct yearly figure and the correct tax deduction for my tax code, but when you minus the tax figure from my yearly gross figure on my p60 the figure that is left is about £185 more than what i actually received. my question is whether the p60 would stand up as proof all tax has been taken off my earnings? i am worried that maybe because my wageslip net amount differs from my bank statement that they might try and take the figure i was paid as the gross amount and tax me again? the company i worked for was a small building firm in birmingham and i am not sure they would help much seeing as i left on bad terms.
on a seperate note the reason the figure is different is because of the tax allowance changing which was updated on wageslip but not what was paid to me.
It sounds like they had your payroll set up as a standing order so that wouldnt allow for any fluctuations unless they changed the standing order when the tax code changed the pay. Doesnt matter if you left on good or bad terms, you are entitled to the pay they agreed. You are clearly very concerned about this so I dont understand why you havent taken the advice that has been given which can only be repeated - write to HMRC, contact ACAS and write to your employer. You have a right to go to the small claims court and even if I could afford to be without £185, I wouldnt let them get away with taking my hard earned cash.
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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
You say the pay agreed, I never signed a contract, only received a letter typed on word with basic information about the job. Would p60 with gross amount be proof of the wage agreed? I will be looking to act on your suggestion from the previous post next week
Threads merged by moderator as the new thread is a continuation of the first and seperating the two only serves to confuse readers.
Simba-Ali
a valid contract is formed by offer, acceptance and consideration
Offer was the typed letter
Acceptance was performing the role that you were hired to perform
Consideration was the payment as detailed on the P60.
As always Jo's advice is sound but remember that as with all advice given here such may not be referenced, quoted, reproduced or relied upon to third parties. Such open discussion on the site is intended as guidance only in order for you to seek professional assistance rather than being considered a replacement for such.
kind regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Thank you for the advice, that makes it abit clearer, does it matter my p60 is a printed copy of an ep60? Thank you everyone for the advice and wisdom, I appreciate it. I will gather the documents I have and hopefully get a good outcome from my previous employer, I would go and see them but I no longer live in Birmingham tut
Crikey id soon put a letter together with copies of proof if £185 was on the line. Id put together a list of the payments you received and the figure you should have received. Give them a chance to correct it. If they don't then take further action.
Disregarding whether you intend seeking recompense from your old employer (your posts suggest not) the payslips and the P60 is the record your employer should have submitted to HMRC. If you have any doubts it may not be, then previous advice was to contact HMRC and get a record of your employment for that year, did you do that?
Shaun, I was mighty confused there for a minute (which doesn't take much lol). I've been away this week and thought, why is Joanne linking to the same thread I'm reading? I hadn't realised it was originally a separate thread til I saw your post.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Sorry I have been on holiday in Spain for the past week,
The reason I haven't contacted hmrc is simply because I have been very busy, I do intend to soon. What happens if what has been submitted to hmrc differs from my p60? Would my p60 still stand as evidence of tax deductions?
