Did some part-time work and didn't declare.....

[qwertyford]

I'm a university student and did some part time bar work last year and didn't declare any of my earnings.

Now, just got a call from that company that wants my national insurance number. After asking more questions they tell me that their business is being investigated by the inland revenue but they've been and gone yesterday, yet they still wanted my NI number for future reference. Then they told me the revenue have got my name and if they wanted they could just find my NI from my name.

Have I got anything to worry about since I had also been working throughout the rest of last year.

[fidgits]

erm yes.


If you earned and didn't declare for tax or NI purposes your in trouble.

You are however, allowed to earn up to about 4k without being taxed, but im pretty sure you have to declare the earnings anyway.

depending on how much you earned, expect a bill...

[qwertyford]

fidgits said:

erm yes.


If you earned and didn't declare for tax or NI purposes your in trouble.

You are however, allowed to earn up to about 4k without being taxed, but im pretty sure you have to declare the earnings anyway.

depending on how much you earned, expect a bill...

Is it just a bill, or is it a fine and some sort of black listing aswell.

[Piglet]

Assuming you weren't touting yourself round as self employed when you weren't, isn't it the employers responsibility to pay tax and NI?

I don't think it would absolve you from blame entirely but I think the blame is quite squarely with the employer?

[2 sMoKiN bArReLs]

The tax man can go for both company & individual....going for the company is the easier option. They can get quite severe penalties, generally in my experience the employee gets off with just the missing dues, plus some interest (if pursued)

[UpTheIron]

First off, don't worry about it...the worst they are likely to do is ask you to pay any tax you owe, potentially plus interest...

Roughly how much did you earn in the last tax year?

[2 sMoKiN bArReLs]

UpTheIron said:

First off, don't worry about it...the worst they are likely to do is ask you to pay any tax you owe, potentially plus interest...

Is there an echo in here?

[Eric Mc]

If you earned under £4,895 from ALL sources in the year to 5 April 2006 you would not have been liable to pay any tax. When you took up the part time job with the employer, HE should have asked for your NI number straight away and asked you to sign a P46(S) form. This would have ensured that he did the correct thing in not deducting any PAYE from the wages paying you.

If he did not do this, he will be in trouble with the Revenue for not following the correct procedures - especially if he didn't do the right thing for other employees as well.

[qwertyford]

Declared, I made at least £4895. From the bar work, probably about £3000-4000 was undeclared. I ended up signing a disclaimer from the company which the boss told us was to protect themselves in the eventuality of something like this happening.

Thanx for the help.

[Muncher]

That doesn't sound especially good...

[Eric Mc]

Your answer is still a bit ambiguous. Were your total earnings from all employments for the year to 5 April 2006 under or over £4,895?

[fidgits]

To me (and please correct me if im wrong)

you LEGALLY earned up to your 4800 limit - which was declared.

and then your employer offered you 'cash in hand' from then on, and you signed a piece of paper to say you knew what you were doing, and then earned 3-4k undeclared.


Your in trouble mate.


Its gone from a simple mistake where you'd have to pay any tax owing and possible a bit of interest - to intentionally avoiding pay taxes.

Thats a criminal offence - and that signed piece of paper shows intent and understanding...

[Eric Mc]

Sounds like a "Comspiracy to Defraud" case.

I would say your employer is in more trouble than you. However, you will not be out of the woods and, if the Revenue can't collect the unpaid taxes and NI from the employer, they will ask you for it - together with interest and penalties.

If your former employer was conducting a scheme like this for most of his "casual" employees, he could be in VERY big trouble.

Edited by Eric Mc on Thursday 12th October 08:52

[percy flage]

I'd be intrigued to hear what hourly rate the miscreant was on. Was he paid slightly better than he would have received had tax and NI been deducted by his employer or was he paid the the full rate for the job, but gross?

I'd agree the employer is in the deeper doo-doo, but neither party should be sitting comfortably.

Job prospects for a graduate with a criminal record for tax evasion? Oh dear. D'ya want fries wiv that?

[superlightr]

so they call you - do they have your address? Does the IR have your address?

Do they have your full name and dob?

[mmm-five]

If you were paid cash in hand, can they prove that you actually worked for them in that period, and aren't just making up to hide a 'missing amount'

[Piglet]

mmm-five said:

If you were paid cash in hand, can they prove that you actually worked for them in that period, and aren't just making up to hide a 'missing amount'

Other than the document he signed confirming his acceptance to the tax evasion

[mmm-five]

Piglet said:

mmm-five said:

If you were paid cash in hand, can they prove that you actually worked for them in that period, and aren't just making up to hide a 'missing amount'

Other than the document he signed confirming his acceptance to the tax evasion

But all that proves is he signed the document, not that he was paid or indeed worked there.

[Piglet]

mmm-five said:

Piglet said:

mmm-five said:

If you were paid cash in hand, can they prove that you actually worked for them in that period, and aren't just making up to hide a 'missing amount'

Other than the document he signed confirming his acceptance to the tax evasion

But all that proves is he signed the document, not that he was paid or indeed worked there.

Yes indeed, he could lie to the revenue and that would I'm sure improve his position no end

The revenue potentially have a document that subject to its wording indicates that he was complicit in a conspiricy to defraud (I think that's Eric's words). They will have the records from the company and presumably time sheets, till log-ons or other details that show that he worked and that payments were made to him - the employer was clearly attempting to cover their arse. I'd imagine that the revenue will mainly go after the "nasty" employer and will hopefully leave alone the "poor misguided student" who didn't realise quite what they were doing wrong and will in fact be pleased to have the "misguided student's" assistance.

IMO he'd be barking to argue the semantics of whether the document indicates he was actually paid and whether he was actually paid. I'd imagine he is much better of rolling over and playing nicely with the revenue - or risk having them auditing his bank accounts for the last 7 years and asking him to explain every payment into and out of them and where he got enough money to fund his lifestyle.

Edited by Piglet on Thursday 12th October 13:08

[fidgits]

Piglet said:

mmm-five said:

Piglet said:

mmm-five said:

If you were paid cash in hand, can they prove that you actually worked for them in that period, and aren't just making up to hide a 'missing amount'

Other than the document he signed confirming his acceptance to the tax evasion

But all that proves is he signed the document, not that he was paid or indeed worked there.

Yes indeed, he could lie to the revenue and that would I'm sure improve his position no end

That was my thought as well...

The fact the IR will probably investigate him - if he tries and pull the wool over their eyes - they'll go after him for all he's worth (potential prison-time lets not forget!).

Whereas if he plays 'sorry, the nasty employer said it was normal' (playing against this wont be the only time its happened if the IR are involved) he might walk with a big fine and nothing more...