Employer didn't pay all tax apparently

B

Barbarossa82

Registered User
Messages
11
Hello

We are applying for a mortgage so my wife asked her employer for a P60.
The Bank wanted as well then a P21 from last year because my wife is paid in cash.
Also, she doesn't get regularly her payslips (which is in breach of the law) but this is a different topic.


We got the P21 but it is not in accordance with the P60.... the P60 states significantly more than the P21.
So it looks like that my wife's employer didn't pay all the tax.

Am not sure how to fix this situation - given the fact that my wife still works there and we need a correct P21 for the mortgage application.
Any advice?
 
Send Revenue a copy of the P60 and ask them to update the P21 accordingly. For your own sakes, take care not to accuse your wife's employer of anything until you're sure of the facts. There may be an innocent explanation, eg Revenue error, for the discrepancy.
 
Hi Tommy

Should she not discuss it with her employer first? Just ask him to explain the discrepancy?

The employer may want an opportunity to fix any error at his end rather than to have a Revenue audit.

Update: Crossed with newtothis's post
 
Hi Brendan

She can indeed ask. But it still won't fix the error, and in the off-chance that the employer or their staff fraudulently prepared an incorrect P60 (which I don't believe is really possible unless they are literally up to something criminal or has someone totally incompetent doing their payroll), all hell could break loose if it is highlighted to the employer.

Far better in my opinion to rule out the more likely possibility of a Revenue data processing error before ruffling any feathers in her workplace. And if there is serious skullduggery going on, let Revenue force the employer to resolve it.

That's just my hunch. Others are free to advise otherwise. :)
 
The P60 is definitely not incorrect - the P21 states she earned only ~2k....

The employer advised her before not to ask revenue for a P21 - so this is extremely fishy....
 
My post crossed too: one thing I forgot to say is whether your wife believes the P60 to be correct.

You'd obviously have to think long and hard before taking this to a body such as the WRC. That's why I suggest the sequence of speaking to the emplyer first, then Revenue, then the WRC.
 
I hate to raise this as a possibility, but does your wife have any form of employment contract? As with the payslips, there is of course a legal obligation on the employer to provide one. If there isn't one and she's paid in cash, without payslips she's in a very vulnerable position; seen from the outside, she may appear to be complicit in receiving “under the counter” payments that have not been subject to tax. In that, worst case, scenario she’s almost certainly best off to go to Revenue and/or the WRC regardless of what happens. Hopefully, there is a more benign explanation (e.g. simple error in P60, very poor adherence to procedures/obligations on payslips etc.).
 
Thanks - yes she has an employment contract.
As stated there is no error in the P60 - the P21 states she earned only slightly over 2k for the whole of 2016. The P60 states an amount which would fit with the hours she worked.
 
Barbarossa82 said:
Thanks - yes she has an employment contract.
Click to expand...

OK, well that's good. I'd stand by my original recommendation: approach employer first to give them an opportunity to ask if they know why P60 and P21 don't match, then approach Revenue. Unfortunately, I think you could be waiting a while for them to get back, which doesn't exactly help. Would a letter from her employer (assuming they'd give it), confirming her salary satisfy the bank?
 
The bank already has a salary certificate and the P60 - but wants still the P21.
Thank you to all for the advice!
 
Is this not a case of the employer paying her one amount and having her on the books officially for a much lesser amount? The bank obviously were suspicious for whatever reason and requested the p21. Is it not that easy issue a P60 anymore for the wrong amount? Genuine question as I know in the past many were just handwritten so maybe there is something these days that makes that impossible or maybe not!
 
Barbarossa82 said:
We got the P21 but it is not in accordance with the P60.... the P60 states significantly more than the P21.
So it looks like that my wife's employer didn't pay all the tax.
Click to expand...

Barbarossa, how did you apply for the P21?
Did you apply on-line using PAYE Anytime or directly to your tax office?
 
Barbarossa82 said:
The bank already has a salary certificate and the P60 - but wants still the P21.
Thank you to all for the advice!
Click to expand...

If the salary cert matches the P60, but not the P21, I can think of only two explanations: (1) Employer P35 submission is incorrect, either in error or intentionally (i.e. under-declaration of wages/tax), or (2) Error within Revenue. In either case, I think Revenue is your best port of call at this stage. I'd contact them to say the P60 you were given doesn't match the P21 and can they look into it. I've always found them to be helpful but potentially slow in answering. You can explain why you're asking to see if they can do anything to speed things up.
 
Sophrosyne said:
Barbarossa, how did you apply for the P21?
Did you apply on-line using PAYE Anytime or directly to your tax office?
Click to expand...

My wife was at the local revenue office and they told her that she should apply for it online.

@newtothis I think we will email her employer and tell them that the bank insisted on the P21 - and that there is a high discrepancy between it and the P60 - and ask them to fix this or we will ask revenue to solve that
And yes I believe this is an intentional case of under-declaration as her employer asked her not to get the P21.
 
Barbarossa82 said:
I think we will email her employer and tell them that the bank insisted on the P21 - and that there is a high discrepancy between it and the P60 - and ask them to fix this or we will ask revenue to solve that
Click to expand...
Except they can't fix a P21. Only Revenue can do that.
 
You must log in or register to reply here.
Back
Top