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National Insurance

Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
I'm 18 as some of you may know and a student.

For the past year I have worked part time at a place which pays me cash in hand and has never asked me for my national insurance number or anything like that. I don't work many hours, i don't know if that's relevant but anyway . . .

Is this illegal and is there anyway that they can get in trouble with the law for this?

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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Yes its dodgy, yes you could technically be asked for the tax, no I wouldnt worry about it, just keep mum and when you get your next job do it above board.
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    I've just finally got a new job :D I wouldn't care if it was anywhere else I just hate the place and how unprofessional etc it is so was wondering if you can report them.
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    You could, though you may be asked why you know, at which point you might be looking at a tax bill.
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    budda wrote: »
    You could, though you may be asked why you know, at which point you might be looking at a tax bill.

    You only pay tax if you earn over something like £4k though right? That job is such a joke i earnt £22 last week.
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    If you want to make a complaint You do it un named but wait until you've been in your your job a little while first so your old employers dont suspect its you.
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    squeal wrote: »
    You only pay tax if you earn over something like £4k though right? That job is such a joke i earnt £22 last week.

    £5,039 (roughly)
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    squeal wrote: »
    You only pay tax if you earn over something like £4k though right? That job is such a joke i earnt £22 last week.

    if you're a full time student you're tax exempt
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    otter wrote: »
    if you're a full time student you're tax exempt

    No your not. I have lost count how many times this has been pointed out on here. You are not tax exempt if you are a full time student. Most dont pay tax simply because they dont earn anything near their personal tax allowance each year, but if you exceed it you will pay tax. Students loans/grants etc are paid tax free which does confuse some people.
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    JsTJsT Posts: 18,268 Skive's The Limit
    No your not. I have lost count how many times this has been pointed out on here. You are not tax exempt if you are a full time student. Most dont pay tax simply because they dont earn anything near their personal tax allowance each year, but if you exceed it you will pay tax. Students loans/grants etc are paid tax free which does confuse some people.

    I can verify that, I'm a full time student and earn £6k and get taxed a bomb.
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    otter wrote: »
    if you're a full time student you're tax exempt

    Bollocks.
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    not completely, if your in scotland you are ASFIK
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Hellfire wrote: »
    not completely, if your in scotland you are ASFIK

    Nope - all UK residents are liable - even students! (assuming you are talking about income tax not council tax). There is the Scottish Variable Rate of tax which you may be referring to but it's never been used. The rules are exactly the same as for the rest of the UK.

    Squeal - were you earning over £100 a week? If not then there most likely won't be a tax liabililty or a national insurance liability. No deductions from your pay packet means that the employer is not obliged to provide you with an itemised payslip (thats off the top my head and could be totally wrong). It does sound a bit dodgy in the respect you have never been asked for your national insurance number but unless you are 100% sure you are in the right and your employer was acting fraudulently I would hold off reporting them until you have been in your new job for a little while. It could all come back on you because technically everyone is liable under the self assessment rules to notify HMRC of any income that has not been correctly taxed.
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    By law, your employer must give you a written 'pay statement' - usually called a 'payslip' - when or before you are paid your wages. It must include your gross pay, take-home pay and any deductions.

    Deductions that change (for example, Income Tax payments) must be individually listed each time. Fixed deductions (for example, trade union subscriptions) can be shown as one combined total provided you have been given an annual statement showing how that total breaks down. The annual statement must set out the amount of each fixed deduction and the intervals at which the amount is paid.

    Additional information might be included on your pay slip, including your National Insurance Number, tax codes and hourly rate. Also, payments like overtime, tips, bonuses etc might be shown separately. However, none of this information is required to be on your payslip.

    It's illegal for your employer to pay you 'cash in hand' without deducting tax and NICs from your wages.

    If you accept money in this way, you risk losing your employment rights and the right to some benefits, such as:

    * maternity or paternity leave
    * sick pay
    * Jobseeker's Allowance

    In addition you could end up having to pay the tax and NICs yourself.

    If you suspect your employer of not paying tax or NICs on your wages you can report them in confidence using the tax fraud hotline.

    -- Bearing in mind that you are just as liable as the employer as your are aware of the fact you are being paid cash in hand, and that you may be due deductions of Tax and NI. Ignorance is not an excuse :lol:
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