Weird stuff going on with my employer, please help

[knittedwoollenmouse]

I left a place of employment last year and went to another employer. I never received a P45 and I didn’t receive a P60 this April either.

I recently did a few bank shifts for my old employer - this is a very common occurrence in my industry - as I wanted to earn a bit of extra money and see my old colleagues.

I was paid by cheque in July. This was for one shift. I was confused, but just put it down to them not having got round to resurrecting me on the payroll yet.

I did a further three shifts and filled in a time sheet, but haven’t been paid. I chased it and was told I’d be again paid by cheque. The payment would be made as a ‘gift’ when I said what about paying tax on it.

Obviously, this isn’t right and I need to pay tax, but the employers shouldn’t be doing this. I’m not self employed and my pay always goes through PAYE.

I can’t afford to get a criminal record for evading tax, but what am I supposed to tell the tax people? Also, how do I get my P60?

The employers need to employ me properly in order for me to be under their public liability insurance should anything go wrong. My professional registration would be at risk as I’m not insured independently.

Also, the employers are a charity and I’m worried about being implicated in something underhand.

Please does anyone have any advice on what I should do? Obviously I can’t work there again as I don’t have a proper employment status.

I’m not self employed and my pay always goes through PAYE

You can be both self employed and employed at the same time. The charity seems to be treating you as self employed. From a tax point of view, all you need to do is register for self assessment and declare the amount the charity has paid you as self employed income on your tax return. As the charity is treating you as self employed you won't get a P60 from them and don't need one. You just need to keep a record of how much they pay you. Make sure you put aside enough to pay the tax bill at the end of the year.

Insurance is a separate issue. If the charity insists on treating you as self employed you need to check if their insurance covers you and, if not, get your own. The cost depends on what you do and your likely earnings from self employment. It could be less than £100.

@knittedwoollenmouse yes just do a self assessment tax return for the money you have not paid tax on. Easily sorted.

Insurance issue is something else. You should probbaly talk to the charity and explain your concerns

I need a P60 for April 2017 to October 2017 period though. What about my P45 as well?

You do not need and will not get a P60 for April 2017 to October 2017. You only get a P60 if you are still working for the employer at the end of the tax year (i.e. 5th April 2018). You weren't working for the charity at that point so they will not provide a P60.

By law the charity was required to give you a P45 when you left. As you didn't have it to give your new employer you will have filled in a P46 when you started your current job. The P60 you received from your current employer should have the figures for your current employment and also figures for previous employment, i.e. your time working for the charity. If the details on the P60 are correct you don't need the P45. Even if they aren't, if you still have your final payslip from the charity that has all the details you will need. You will never be required to produce the P45.

How would my current employer know what I’d earned with my previous employer though? I thought that because the previous employer hadn’t issued me with a P45 then I am still technically employed by them.

I’ve just checked my P60 from my current employer and it has 0.00 in the tax box for previous employment.

You may be underpaying/overpaying tax if they don't know about previous employment in year.

No, you are not technically still employed by the charity. Their failure to issue a P45 does not mean you are still employed.

You will need to complete a self assessment for 2017/18 as you may have paid the wrong amount of tax. If you have your final payslip from the charity you should have all the information you need. If you don't, go back to them and demand your P45 or, at the very least, a statement showing their PAYE reference, how much you were paid during the 2017/18 tax year and how much income tax was deducted.

No my tax is okay as they have my tax code.

I’ll try to get that info. Thanks for the advice. They have form for being sloppy and unprofessional and I don’t want to do any further shifts there. It’s not worth this hassle.

No my tax is okay as they have my tax code

That is not enough. To get the tax right, your employer also needed to know how much you had been paid by the charity.

Normally, each month (or week if you are paid weekly) your employer calculates the tax you owe based on your total earnings for the year to date, not just the current pay period. Without the details of your earnings while you were working for the charity your current employer hasn't been able to do that. As a result, you may have ended up paying the wrong amount of tax for the year.

I get all my tax allowances through another income. I pay basic rate on everything I earn.

In which case it is probably correct. But I would still recommend completing a self assessment just to be sure you've paid the right amount of tax.

I’m currently waiting to receive the cheque then I’ll phone HMRC to explain what’s happened and find out how to pay the tax via self assessment.

The other bank staff are on PAYE so I’m not going to work there anymore as it’s causing me worry and hassle. Thanks for the info anyway, I appreciate it