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Fraud and PAYE

Fraud and PAYE

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I have a new client who has been subject to a huge fraud (all proved and been to court)

One key aspect was extra non existent employees on the payroll.

A recent discussion indicates that PAYE was operated and the net stolen by paying it all into the perpetrator's bank account and it is these net payments that insurance company have paid out on.

It occurs to me that tax and NI is not due and any PAYE paid could/should be refiunded by HMRC - anyone seen this or got any tips?

Thanks

Mike

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By Roland195
12th Feb 2013 15:47

Good luck with that

I would agree that PAYE/NI can't be due on the fraudulent payments however getting HMRC to agree with you despite what was proven in court could be an uphill struggle.

How long a period was it over for example?

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By andy.partridge
12th Feb 2013 22:02

Sounds pretty basic, but ....
Have you filed an amended P35 yet?

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By Anthony123
15th Feb 2013 17:27

were the non existent employees

actually non existent or was there ID fraud by using real people's names and National Insurance numbers?

If so those people are going to find that employment turning up under their NI number when HMRC does their end of year reconciliation. They could even face paying extra tax for example if adding this phantom employment to their present job produced a higher rate liability.

It would therefore be a kind gesture if nothing else if your client filed an amended P35 or at least provided as full a picture as he can to HMRC of who was purportedly paid. It may even be that at the end of this HMRC agree to refund something.

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