Advice please!

Advice please!

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Hi

Since my prof body appear to be on limited hours re advice (and no-one's available just now), and this issue has caused me one sleepless night so far, I hope some of our wise readers may be able to help and maybe even reassure me.

I am an accountant working in-house, who also undertakes bookkeeping for a separate organisation on a voluntary basis. I discovered yesterday that the manager of this organisation had made a payment earlier in the day to another employee without deducting PAYE. The payment is definitely in connection with his employment, this is not in doubt nor denied. I think this is simply a case of Hanlon's razor (Never attributre to malice that which can adequately be explained by stupidity) to those that know the manager, although the man on the Clapham Omnibus would have difficulty believeing that in the circumstances.

I have managed to get the organisation's accountants to hold off submitting this month's RTI return, and informed the manager of the mistake he has made along with telling him how to correct it & giving him the opportunity to do so. Is that the right action at this stage?

And if he doesn't take corrective action, am I right in thinking that I must disengage from working with this organisation and report them to HMRC for money laundering / tax evasion? Or does this obligation pass to the organisation's accountants? Or a shared obligation?

Any and all advice gratefully received.

M-S

Replies (2)

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By AndyRylance
22nd May 2015 15:16

PAYE

Have you checked the employee status of the individual concerned?

Small companies often try to get away with stating someone is self employed and should deal with their own tax.  HMRC often challenge this and the employee themselves can challenge it as well. 

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By cparker87
23rd May 2015 10:49

Why delay

I would probably have gone ahead and submitted the RTI and continued to work on the issue. You can always submit an update; there is no need to risk penalties when your return is >99% correct. 

Regarding the monies paid, are you certain they are not in connection with a loan? 

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