Lack of PAYE records for 2 years

Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
I've been asked to help sort out the records of someone who should have had a PAYE scheme but didn't.

I believe in this case I need to do a "net to gross" adjustment to get the tax/NI due to HMRC which my software does for me.

As no P45 or P46 was issued I need to use tax code BR and carry that through

I was thinking, if BR means the employee ends up paying too much tax (by virtue of any other income they had or didn't have in the year) they will get a refund. This then means that the employer actually paid them too much. Is that tough luck, simply because they didn't operate PAYE right from the start?

I'm doing the calcs now and they go back to 2008-09.


  • wildgoose1uk
    wildgoose1uk Registered Posts: 200 Dedicated contributor 🦉
    As far as I can recall HMRC assume that the ee was paid net pay and hold the er liable for the tax/nic. I think that was in the case of the ee being self employed but the Revenue disagreed.

    Worth checking though.
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