To think it's an outrage employer isn't financially responsible?

[ToeSucker]

Working for start up.
There are a million issues with dirty politics, toxicity etc.
My big problem is they started paying staff via revolut and are not paying HMRC, NI or student loan contributions. Instead they're just paying the net pay amount via revolut and the rest of the money is going missing.
They've stopped paying contractors too. They're ghosting them.

We just got a 50k investment and loads of people who were meant to be paid have not been. CEO insists they have been.

I have just found out CEO told other founders my ex-colleague and friend phoned him asking for equity instead of expenses money they're owed. This never happened according to my friend.

I have my resignation letter sent. I am going to escalate to HMRC etc but everyone seems very casual about this when it seems quite serious. AIBU?

Police have said it's not technically theft if they never gave me the money

Are you employed or self-employed? It is not your responsibility unless you are the one running payroll.

A company has to legally give employees a payslip

OP needs to make sure their NI and income tax have been paid by their employer. Because if not, the employee is liable.

This happened to me once 20 years ago. The company went under owing NI, tax other payroll deductions and a shitload of VAT. It was written off, so I didn’t get the tax refund I should have etc.

You can ask for redundancy if they don’t pay but nothing else.

Employed on permanent contract. HMRC say my responsibility regardless.

If it’s a limited company the PAYE and employee’s NI are a liability of the company and it does not go against the employee. They are withholding taxes that would form part of HMRC’s preferential claim in an insolvency.

If you can show the deductions have been made then it shouldn’t go against you at all. Same for any other deductions.

You can only claim for redundancy from the government fund if the company enters into a formal insolvency process.

You certainly want to be explicit with the Board, in particular get on record they have legal responsibilities and can be disqualified as directors for knowingly trading insolvently (which this company must be).

Second, you must contact HMRC, not just to report the company but also for your own sake. I’m afraid it’s quite likely they may come after you for the unpaid employee income tax. You’ve effectively been paid “cash in hand” outside of PAYE. Even if it’s not your fault, it’s your problem (for the rather obvious reason nobody would ever pay/owe tax on cash payments if it wasn’t).

Sadly hmrc will treat the net pay you have received as gross, and come after you for more tax if you don't have payslips

Hi, OP -

This is certainly theft at an ethical level. I hope it will be prosecuted and I think you should report to the police as well as HMRC once you are safely out. But I am not at all confident it will be (prosecuted)

I think it would be a good idea for you to consult with a tax lawyer if you can possibly afford to.

Very best wishes

Hi op this has happened to me you need to go back to hmrc put it in writing or report online your n.i needs sorting out they are fobbing you off. Have you asked your employer for your payslips? My employer ran a dummy payroll account and never reported any tax or n.i I contacted hmrc sent my fake payslips and they put the n.i on my account I always hoped the robbing twats would get charged but I left and they went into liquidation changed the company name and the directors so who knows. It might be your responsibility to get a payslip and check it but you cannot control the thieves who are committing fraud.

All employees are supposed to receive payslips. I understand that is employment law. I have a company and employ people. I would suggest that you get what you are owed and leave. Asap. Do you know if they have stopped your NI, tax, student loan pension contributions. If so keep any info to prove to HMRC.

They’ve run out of money.

This is awful OP.

When you phoned HMRC what department did you speak to and did you say you were reporting payroll fraud? I think it’s best to not assume that everyone on HMRC phone lines knows what that they are talking about, they have a script for the usual queries so some will not have come across this situation before and may give incorrect advice.

I would definitely try HMRC again. Maybe speak to acas too/beforehand for advice?

Actually they're currently hiring!

Acas couldn't offer advice beyond contact HMRC. They said I probably need a lawyer.

This happened to me. Years ago.

id never work for a start up again.

why have you all kept working since April?

You should be able to make up the payments yourself.

If you logon to the govt gateway to check your personal tax account, does it show you working for this company? If so, what is the last month it shows payroll amounts for - this is populated when payroll submit a FPS to HMRC so it will prove if they are running a payroll or not.

To help with cashflow I have known smaller companies to just let the HMRC bill go unpaid, but it’s worrying if it’s over a couple of months worth as the interest will stack up and HMRC can force them into administration.

Are they up to date with their tax filings on companies house?

That's what I mean I'll just have to pay HMRC money I shouldn't owe and lose a huge chunk of my salary

AI IS NOT A SEARCH ENGINE

The last payment shown on government gateway is may. I've been paid 4 monthly salaries since and it's been the same amount I always get after deductions.

Haven't been able to get new jobs really

I know, but when you do a search in Google that is the first reponse now.