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Directors friend employed-wages in his acc

Directors friend employed-wages being paid into his account

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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27th Feb 2019 15:46

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

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27th Feb 2019 16:00

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?

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27th Feb 2019 16:29

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.

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27th Feb 2019 17:07

You are being taken for a fool. Hopefully you will have enough gumption to kick back.

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27th Feb 2019 17:25

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!

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28th Feb 2019 07:05

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?

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28th Feb 2019 08:34

Quote:

...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.

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28th Feb 2019 09:42

Clearly friends with benefits...

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28th Feb 2019 12:12

Do you have grounds for making a suspicious activity report? Be careful not to tip off the client if you do.

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