What happens if your employer is not paying/deducting NI contributions?

[kelibobs 10]

I have received a letter from Inland Revenue confirming i have a shortfall in my NI contriutions. I have checked my wage slip today and it doesn't look like my employer is deducting NI contrinutions from my wages. I work for a large company and i am really suprised this could have happened.

 

I am worried about what will happen now though any ideas??

 

i have contacted my HR and am waiting a response. will i have to pay these cotnributions now??

[Longcol 597]

Depends how much you earn - if it's under £110 per week you don't have to pay NI.

 

This website might be helpful.

 

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTax/DG_4015904

[BettyBooHoo! 10]

Hi,

My husband and his friend had the same problem a few years ago when they worked for a small firm. Their boss had never provided payslips,just payed them directly into the bank so they were none the wiser but in the last year when the firm started getting into difficulty, at some point he stopped paying their tax & NI contributions! Because the amount of pay was the same he had no idea. Like you, he didn't know until they got a letter about it after the firm had folded. We've since had a letter telling us of the full amount that hasn't been payed asking if my husband wants to make a payment to cover it so from what i can gather, at any point you can pay up what's owed (to stop you having any problems down the line). Hope that helps a bit. Maybe as it's your company's error they may sort something out for you where it's split down a bit over a few months????

[kelibobs 10]

i earn just under 15K so i should be paying it. i think with it being their error they will pay there part and then i will get the option to pay my part if i want to. i have just spoken to the inland revenue and thats what they have said. i need to send in my payslips for it to be investigated.

[HeadingNorth 11]

If you've been paid the money that should have gone in NI contributions, then you'll be given the option of either paying it back, or just not earning a full stamp (or whatever they call it nowadays).

 

If your employer has been deducting the contributions from you, but not paying them to the Inland Revenue - as happened to my father some years ago - then your employer would be guilty of theft and/or fraud. (My father's employer was told, in no uncertain terms, that if Dad didn't have a cheque in his hand for the shortfall by the end of the day, he would go from work directly to the police - the cheque appeared about twenty minutes later.)