Tax Dilemma...boss never processed p45

Bo Malicious

Hi,

Thanks for taking the time to read this.

I recently left my job of over 1 year. At the beginning of my employment I handed in my p45 to my boss. However, the company I worked for never processed my p45. I reminded them of this again and again as the months went on. I suspected they weren't processing it on purpose - perhaps to avoid having to declare me as an employee to save money on insurance etc. (other long term employees employed by the company are in the same position even now!)

I have worked in a considerable amount of companies over the last 10-15 years and have to admit this one was incredibly unprofessional in this and other regards. When it transpired they 'lost' my p45 I paid a visit to the tax office to investigate how I get a new one - the lady in the office was very nice but while there I basically found out that they had no record of me working for the above job - the last employer they had on record for me was actually from my previous job.

Frustrated and uncomfortable with this and a whole host of other issues I quit and feel a whole lot better for it. However, I would like to sort this out once and for all and am totally at a loss as to what my options are. Ive never been on the dole nor do I ever want to. But I dont want to get in trouble and am a little unsure what to do - should I keep quiet, apply for back taxes - go and explain my situation....

Im so confused, please help.

mikemac

You waited a year and it still didn't get resolved :eek:
Were you paying emergency tax?
Edit: what do you mean "keep quiet"? Did you pay tax at all for the last year? Cash in hand?

Write a quick letter to the company, sort this out or you're going to ask the Revenue to audit them for fraud. Give them 2 weeks to do their part and if no progress, report them!

With the shortfall in taxes lately, the Revenue will delighted to hear from you

Bo Malicious

micmclo>Morning, thanks for the reply. I didnt wait a year - I was trying to organize it but every time they gave me the run around.

"keep quiet" -- because I dont want to end up being prosecuted or something (can that happend?!) or be hit with a massive fine...

I was paid by cheque - monthly and no taxes were deducted from what I can tell. (This was often paid up to two weeks late!) I never received a wage slip.

mikemac

Oh, I Know you were trying hard for a year to get it sorted.

Regarding a prosecution, the Revenue would most likely go after the company and not you.

I assumed incorrectly you were on emergency tax.
As you say, if you follow this up then you may get a tax bill for thousands.

Maybe forgot about this P45 and report them without giving your name.
Note: I'm not advising you to dodge taxes but I'm not sure the you realy want a letter demanding back taxes.
But either way, the company has to be reported, they are probably doing it to everyone.
One of the experts will be along later to give better advice then I can

Bo Malicious

thanks Micmclo appreciate it.

ChippingSodbury

I'm fairly sure that the tax liability will not be yours: it is the company's responsibility to deduct the taxes owing on your behalf. If they haven't, they have broken the law and that's their problem. If the company try and come after you for unpaid tax, all you need to do is say is that the (verbal) employment agreement you had was for the net amount paid each month: I can't see how they could pursue this legally as they have already breached employment law by not deducting your tax: it sounds like "honest mistake" on their part wouldn't get very far...
You should get proper advice, any decent accountant should be able to tell you definitively.
Don't let these langers get away with not paying: remember it is you that will lose out on benefits such as PRSI etc.

dudara

Bo Malicious wrote: »

I never received a wage slip.

This was illegal on your employer's part.

You should have bank records showing the cheques being lodged and cashed. I would proceed to talk to the Revenue.

Bo Malicious

ChippingSodbury> thanks for the reply. You make some interesting points regarding employment law. Not sure where to go to get any additional information about this in plain everyday terms so all feedback is appreaciated.

Dudara> thanks for your reply, thats also interesting, wasnt aware what they were doing was actually illegal.

Any accountants here able to confirm what Micmclo mentioned above?

thanks everyone.

dudara

From the Revenue website

Your new employer must deduct tax from your pay under the PAYE system

AARRRGH

You'll have the pay the tax.

At the end of the year you're supposed to send the revenue a statement of your earnings and tax paid for the year. They then calculate if you paid too much tax or too little.

You owe the revenue office money and you will have to give it to them if you notify them of your lack of tax paying...

Saying all that, your tax credits will be reset in January, and your new employer won't need a P45. You still owe the tax though...

themadchef

Something similar happened to me. The establishment i worked in for just over a year and a half told me they were deducting taxes etc from my wages every week.....no pay slip, just cash. I expressly told them i wanted to work "on the books" to keep up my stamps and it was "no problem" or so they said. When i left i asked for p45 which never arrived and i just moved on into next job on emergency tax. It was very early on in my career so i really had no clue about p45's p60'ts etc

About 6 weeks into new job i decided to get some dental work done..rang revenue to see why i wasin't covered...eventually told i had no stamps for over a year????

I rang revenue told them the story, the next thing i hear thet place had a massive audit done .....and all my stamps were brought up to date. I was never contacted personally by revenue after my initial converation with them, but i believe the place in question got hit with a huge tax bill. More than deserved imo.