Directors friend has been employed. Their wages are being paid into his account - does payroll need written authority from the employee to have salary paid into Director's account or can diector authorise it. Circa £3k per month.
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To prevent future disputes I suggest the employee is asked to give written permission
This smells as though the director is charging £3000 to the company but paying the employee less and pocketing the difference
An employee is free to do what they want with their pay, but I would expect, in the normal course of events, that the employee would need/want to give express written permission for their pay to be directed elsewhere.
But this doesn't sound like a normal course of events - why on earth would the employee want to give up £3k per month that is rightfully theirs and on which they will be taxed (One assumes that it is the net pay that is to be re-directed)? Or is the employment less than genuine?
Who are "they" ?
Any normal employer would insist on an employee's wages being paid into an account into the employee's name.
If I was a HMRC Officer, I'd be wondering if "they" existed and, if "they" did, whether "they" were aware of this employment.
What?? For once there is good reason to remain anonymous. The word 'dodgy' springs to mind. I can think of no reason why an employee's salary would be paid into the Director's account. Is the employee (if indeed they exist) happy with this situation? Very very odd!
Payroll needs, not only written authority from the friend, but to meet with that person. Do payroll and the friend-employee work in the same office, or is it the same chap as in this thread: https://www.accountingweb.co.uk/any-answers/tax-evasion-or-just-unethical, and the friend (in)conveniently works at the other end of the country?
...or can diector authorise it. .
Is that a serious question? Can person A authorise payment of person B’s salary into A’s bank account? Really? Would you be happy if you were B? This has got fraud written all over it.
Do you have grounds for making a suspicious activity report? Be careful not to tip off the client if you do.