Tax and NI not paid by employer for apprenticeship.

[Crapstone]

My son has worked for an employer for 3 years under an approved apprenticeship. They have deducted tax and NI from his wages but haven't paid it. He hasn't been given anything from them in the way of a P45 or any other wage slips, and the apprentice scheme has now asked him to lie that he's passed all levels on NVQ even though they haven't checked anything from the start.

 

He has now left the company.

 

What to do? The company have evaded tax and the agency that sent him have lied. He's not going to be credited with paying tax or NI. I've assured him he's not the one in trouble, his wages have been debited but he's worrying that he's going to get in trouble too if he reports it.

 

 

Any thoughts? I can deal with it but just asking if anyone else has any advice to add?

[f16]

Did he have a contract of "Employment" ???

 

As I understand this.... (I admit it's been a few years since I "Employed" anyone .....

But from what I recall.

If a person worked for "X" company for more than 6 or 8 weeks then that person was "Deemed" in "Full time employment".

It was then up to the "Company" to deduct Tax and NI. .... And pay it and "Their contribution" to HMRC.

 

I think you should report to HMRC.

Your Son has done nothing wrong.

 

See what the "Legal Crew" say.

[f16]

Did your Son have a CIS card ????? (Or what ever they call it now !!!!!!)

[Emmzzi]

when you say "the scheme" have asked him to lie, who do you mean?

 

did he earn enough to pay tax and NI?

[steampowered]

On what basis are you saying the employer has not paid tax and NI? I'm not sure why he would whether or not the employer has paid the tax.

 

If there is a suspicion that this has not happened the appropriate course of action would be to report them to HMRC.

[ericsbrother]

The company will be getting a training allowance from the government so you can check up with the assessment centre whether they have been following the requirements of the training body. If the prevaricate on this contact the awards body directly. I would also say your son should check whether his NI and tax contributions have been paid, this is easy as long as he knows his NI number.

Youi mention agency, cant see how an agency can be involved in an apprenticeship as they have their own special terms of employment. Some apprentices are pais a bursary which is not taxable. check to see if that is what is claimed for his employment.

[Crapstone]

Thanks all.

 

He's had nothing at all from them, no contract given. He earned enough to pay tax and NI and they deducted it from his wages. His tax allowance also increased and they still took the same amount so he has in fact overpaid 'tax' which the company hasn't forwarded.

 

He didn't seek the job directly, he was placed by an apprentice agency. Well I say agency but it's linked to a college. I won't name them as it will harm anything that is held against them in the future. It's best not to name any names if legal action could be taken against them by the relevant authorities.

 

A lot of things were going on in the company that he wasn't happy with. Insurance fraud, possibly employing illegals and people that were claiming not to be working, as well as completely ignoring any consumer rights for customers. He didn't want to rock the boat while he was working for them but now he has found another job.

 

No he didn't have a CIS card but he does have one now on CITB for his new job.

 

When I said he was asked to lie - He contacted the 'agency or apprentice scheme operator, whatever it's called', and they said because he was leaving before the 3 years they would say he had finished it and award him the NVQ 3 regardless and not to say anything about it if anyone asked. Nothing has been done in the way of assessment. His employer was inacapable of it and he just periodically received a certificate through the post to say he'd achieved levels.

 

You've all pretty much confirmed my thoughts so I'll follow that up and try to prevent them doing the same in the future.

 

Thanks and will let you know what happens.

[steampowered]

If he has overpaid tax, that would be reclaimed from HMRC, not from the company. Good luck.

[Emmzzi]

NVQ providers get regular, detailed audits. I don't think this is going to wash! I'd get in front of the college.

[ericsbrother]

he should take the matter up with the examining agency or if it is to do with the building trade the CITB would be a good place to seek advice on how to progress. Also, try and find out if the agency that placed him in the scheme has bona fides or is just a middleman.

[Crapstone]

Thanks.

 

The main issue is that the company where he was placed haven't forwarded the NI and Tax deductions they took to HMRC. They have kept the money and it seems they have no intention of paying it. I'll sort it out for him and I think the company will be closing fairly soon! The agency was reputable but obviously they have failed on overseeing his placement and giving the qualifications.