What a nightmare!

[OhWhatAMess]

Basically, DH has just found out that his company have not paid his Tax or NI for the last year.

Not only this but they are trying to force them to go self-employed next year to get out of paying this tax back and expect them to pay their own tax bill at the end of the year despite only receiving the same net salary!

He is concerned now that the IR might come after HIM for this non-paid tax even though he was unaware!!

Could this happen?

And can his company really do this??

Obviously he is looking for a new job. The current company also have a 6 month notice period in his contract, but I assume this will not apply as they have totally breached his contract?

We are very worried, hurt and upset by this.

They say they MIGHT pay his tax as a "non-guaranteed bonus", but we wouldn't hold out much hope, and this is clearly making a large part of his salary "non-guaranteed".

he is not liable for underpaid tax that should have been collected through payroll/PAYE.

thy also can't'force' them to go self employed. they would have to dismiss/make redundant and even is they said he is self employed if he is expected to come to work and work according to their rules he is actually still an employee, but I do agree about finding another job as they are clearly a nightmare outfit and are likely to go bust when the revenue catch up with them about the unpaid tax

Yep - IIRC tax liability remains with the employer, who have to jump through various hoops (ensuring schedule D NIC etc) before not treating payments as PAYE.

Suggest your DH gets another job asap, regardless of notice periods, and also notifies the tax office - he'll need a P45 from them at some point, although he can be paid on emergency tax rate for a while.

I take it he's not with a Union?

Disclaimer though - I haven't done anything with PAYE in 5 years, although I did spend 15 years jumping through various hoops as a subcontractor...

Thanks...sadly he is not a member of a union, would you believe these guys started out as friends of his!!

I agree- forcing him to go self-employed to me seems like constructive dismissal!