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Original poster

Employer didn't put me on payroll for months - paid top much NI

16 replies

OUB1974 · 21/11/2021 12:07

Hi,

I'm at the end of my tether with this. I started work last year and my employers only put me on the payroll in month 4. Therefore I got a huge amount of salary in one go, but only one month's allowance for NI. If they had registered and paid me when I started work I would have paid far less.

They won't resubmit my earnings for the correct month (can they do this?) and HMRC say the calculations are correct. I'm down by about a week's wages (I'm a low earner and my husband has been out of work all year). I can't afford to write this off, but I'm not sure there's anything else I can do. Does anyone know anything about HMRC or payroll and can help? It's so frustrating that I can't get this money back through no fault of my own...

OP posts:

Internetio · 21/11/2021 12:11

Was there an agreement to be paid months worth in one go?

They should be reporting your monthly salary in a timely manner (and obviously paying you it on time)- if they just didn’t get round to it then they should have made a prior period declaration through the RTI system.

Original poster

OUB1974 · 21/11/2021 12:18

Thank tu for your reply. No there was no agreement. I started towards the end of the month so wasnt surprised the first month. Once we were two months in I spoke to them and they still hadn't done it, but sent me a payment, which they then took off the first "official" payment in month 3. If I'd known it was going to cost me so much extra in NI I wouldnt have agreed.

Payroll are saying they cant resubmit. I'm not sure if that means can't or won't (it was tax year 2020/1 . I got my tax back a few months ago as obviously that was wrong as well, but I'm at a brick wall with NI.

I cant remember the exact figures, but say I get £1100 pm before tax and usually pay £30 pm in NI. Because got £3500 in month 3, I ended up paying several hundred, rather than the £90 or so I should have done.

OP posts:

AnnaMagnani · 21/11/2021 12:19

At the end of the tax year HMRC will write to you if you have overpaid NI for the whole year and you can claim it back.

It's v easy to do and happens automatically. Happens to me every year as I pay NI on several jobs so I get to claim it back.

Original poster

OUB1974 · 21/11/2021 12:20

Well when I say I would have agreed, I didn't technically agree to be paid in March when I started in November, butas they said they'd send me a payment "advance" I didn't argue with them and demand they out me on payroll.

OP posts:

Original poster

OUB1974 · 21/11/2021 12:22

Thanks @AnnaMagnani... HMRC are saying it's correct. If I got paid £3500 a month then it would be, but as that was 3 months wages, but submitted as though it were 1, they wont refund me.

OP posts:

bellsbuss · 21/11/2021 12:24

They need to rollback the periods they processed for you then re submit it correctly. Very easy to do

MatildaIThink · 21/11/2021 12:29

Your employer can correct it relatively easily as it is in the same tax year, what they are saying is that they won't.

HMRC are correct in that without a resubmission you were paid it all in one go, they can only apply the rules, they have little to no option to be flexible.

If your employer will will not do anything technically you can report them for misreporting payroll, which would likely be the end of your employment (you started less than two years ago, so have almost no employment protection). Speak to Citizen's Advice to be sure, but I if your employer is not willing to resubmit payroll then I strongly suspect you have no real options in this situation.

Original poster

OUB1974 · 21/11/2021 15:09

Thanks @MatildaIThink...it was actually last tax year, 2020/1...does that make it more complicated?

I wouldnt report them obviously for dear if losing my job, but surely HMRC know already, as I've explained the situation to them to try to get them to sort it out. Or do you have to make a complaint?

Is there any reason they might be unable to sort it out, rather than general unwillingness?

To be fair, it's an external payroll company and I think the employer didn't give them my details straight away, so it's not their fault either. I need to try to appeal to someone at work to explain how much it's cost me...the person who presumably didn't sort it out has now left so it's easier to explain it's the companies fault. I gave them everything
(p45 etc) on my first day. Otherwise will have to just get over it!

OP posts:

MatildaIThink · 21/11/2021 15:24

It not being in the same tax year does make it more complicated yes, but still possible.

There is a different between you saying something and raising a formal complaint with HMRC about incorrect payroll submissions.

It is probably a pain in the arse for them to do it, as you have now mentioned an external payroll company there could well be a not considerable cost associated with filing an amendment for a previous year as well. There may well be an HMRC fine as well due to the duration since it the mistake was made. It will have also cost them more as if you were paying they would have had to pay additional er's NI (@13.8%).

Have you worked out specifically how much it cost you (from what I understand from your posts above it would have been the 12% NI charged on earnings above £797 pm?

AndSoFinally · 21/11/2021 17:51

12%?! Is that figure right?

I'm a high earner and 5% of my total wage each month goes on NI. Not sure which parts are taxed are what % though, I imagine it's banded somehow.

AndSoFinally · 21/11/2021 17:55

Oh I see, it drops down to 2% after a certain amount.

MatildaIThink · 22/11/2021 08:03

@AndSoFinally

12%?! Is that figure right?

I'm a high earner and 5% of my total wage each month goes on NI. Not sure which parts are taxed are what % though, I imagine it's banded somehow.

It is 12% between £797 and £4,189 pm, it then drops to 2% on earnings over £4,189 pm (for standard PAYE employees), the employee pays 13.8% on all earnings over £797 pm. Neither the employee or employer pays NI on monthly earnings below £797.

MatildaIThink · 22/11/2021 08:04

@AndSoFinally

12%?! Is that figure right?

I'm a high earner and 5% of my total wage each month goes on NI. Not sure which parts are taxed are what % though, I imagine it's banded somehow.

ChateauMargaux · 23/11/2021 17:40

Take it to your boss with all of the calculations.... what you would have paid if they had processed it correctly and what you have paid. Print out all of the correspondence you have had with HMRC and with the internal and external payroll company. Ask them to consider making a one off payroll adjustment so that it is correct for you, explain that you should not have to bear the cost of this.

ten2one · 24/03/2024 01:41

@OUB1974 did you get anywhere with this? I'm in a very similar situation with an ex-employee

Original poster

OUB1974 · 24/03/2024 06:55

ten2one · 24/03/2024 01:41

@OUB1974 did you get anywhere with this? I'm in a very similar situation with an ex-employee

Not in terms of getting work to resubmit it, but they compensated me in the end (they gave me the £2-300 that I overpaid). There's not much you can do if they won't resubmit it as the calculations are technically correct... Good luck.

OP posts:

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