ISSUE WITH MY TAX CODE WORKING FOR A BIG FRANCHISE

Companies Pay Roll seem to be Ignoring me.

Didn't find your answer?

Hi AccountingWeb, I hope you are well. I'm struggling to find a solution to this situation, I am hoping someone can help me out .

Just wanted to State I know nothing about Tax, hence why I am here.

My Business Has suffered from Covid-19, As I am only 23, I picked up a Part-Time job working for a Large Pizza Franchise Company just to Pay the bills. However, the issues Started once I received my first Payslip. The PaySlip had the Tax code BR(W1/M1).A BR code means that you receive no tax-free personal allowance, so everything you earn will be taxed at 20% (or the basic rate, hence the letters 'BR'). However, I emailed my auntie(Shes an accountant), and She suggested contacting HMRC, as its a new tax year you haven't used any of your personal Allowance, and HMRC could change your Tax Code. However, this is where it gets fishy. I log into my HMRC account to view my personal PAYE Income tax summary, and it shows no employment with this franchise ( and yes I had been working there more than 5 weeks), I spoke to two other lads in the shop they also had the same issue it's not showing up as being employed on there PAYE Income tax summary. Anyway, I got in contact with HMRC, they said they need a PAYE REFERENCE NUMBER, AND PAYE ID  to change the tax code, Neither are on my PaySlip. So I decided to email the people that emailed my first Payslip, I have had 1 response in 3 weeks completely not reading my emails, I have called Head office of the franchise, but been told each account are done by there respective group owners. I managed to get a Whatsapp number of the Head of Payroll but as usual, had no Response. I know the name of the company that owns the multiple franchises, they seem to be deliberately ignoring me?

Questions I have are 

1) What should I do , is there anything I can do 

2) Is there any legitimate reason it wouldn't show up on my PAYE Income tax summary.

3) I'm completely unqualified and know very little about tax, as someone who is educated in this area does anything I have said bring up red flags 

 

Replies (30)

Please login or register to join the discussion.

RLI
By lionofludesch
20th Jun 2020 12:47

If you can't get any satisfaction from the company, report it as a fraud to HMRC. Send them a copy of your payslip to show that tax has been deducted and ask if there's any record of it being received.

Before you do that, it's often a good idea to mention to the employer that, if you don't get an answer, you'll reluctantly have to deal direct with HMRC. Then they can choose between hassle from you and hassle from HMRC.

Edit - I should say that, if it's a franchise, you're probably asking the wrong folk if you're writing to head office. Your employer is likely to be the head honcho at the place you work at. If you've no written contract of employment, browse around for something that might tell you who owns it. Certificate of employer's liability insurance for instance. It should be on display somewhere, though often honoured only in the breach. Or invoices and delivery notes left lying around.

Thanks (0)
avatar
By jonazax1717
20th Jun 2020 12:57

Hi lionofludesch, I stopped contacting the head office weeks ago as they were not any help. I know the company that owns my franchise and the owner, didn't want to say on here. Problem is HMRC can't do anything because it doesn't show I am employed by them, so don't know how to change my tax code

Thanks (0)
Replying to jonazax1717:
RLI
By lionofludesch
20th Jun 2020 13:06

Quote:

Hi lionofludesch, I stopped contacting the head office weeks ago as they were not any help. I know the company that owns my franchise and the owner, didn't want to say on here. Problem is HMRC can't do anything because it doesn't show I am employed by them, so don't know how to change my tax code

Then it sounds like the company you work for is taking your money and keeping it. If HMRC aren't interested in money being stolen from them, I suggest you mention it to your MP.

Thanks (0)
avatar
By Paul Crowley
20th Jun 2020 14:11

Could be worth sending a new starter form to your company ticking box A

Date it after 6 April 2020

https://assets.publishing.service.gov.uk/government/uploads/system/uploa...

Send recorded in post

If there is something fishy they will probably want to stop your employment as you are the one asking questions.

Any other job you can find?

Do not forget that if you received SEISS self-emplyed grant and intend to claim version two you will still have 6 months untaxed grant to be taxed. There is only 1 personal allowance

Thanks (0)
Replying to Paul Crowley:
avatar
By jonazax1717
20th Jun 2020 14:13

Thank you so much for your help, I will have a think and decide, I have already got another job lined up, just thought I would try and recover the tax

Thanks (0)
avatar
By Paul Crowley
20th Jun 2020 14:06

Could just be processing delays. Discover employer and if it is a company get auntie to search compnies house and give her opinion.
Did you start before 5 April? If so you should have a p60. If not ask another worker if they will share a sight of their p60
p60 shows employer name and address But critically PAYE reference.

Thanks (0)
Replying to Paul Crowley:
avatar
By jonazax1717
20th Jun 2020 14:15

started after the 5th of April, not received a P60, can't get hold of anyone in the company, even LinkedIn messaged the regional manager, got a standard response

Thanks (0)
RLI
By lionofludesch
20th Jun 2020 14:05

Much depends on how far you want to take this.

You could just march into the payroll office, tell them HMRC has no record of your employment and accuse them of keeping your tax money.

A less bold course of action would be to march in to the payroll office with Paul's New Starter form and insist that they apply it. If they don't, you have a pretty clear indication that something underhand is going on.

Thanks (0)
Replying to lionofludesch:
avatar
By jonazax1717
20th Jun 2020 14:11

Thank you so much for your help, I will have a think and decide

Thanks (0)
Replying to jonazax1717:
RLI
By lionofludesch
20th Jun 2020 14:21

Not at all.

Fraud needs dealing with.

What's disappointing is the apparent lack of interest from HMRC - though I could be doing them a disservice if they don't appreciate the situation for what it is. Or seems to be.

Thanks (0)
Replying to lionofludesch:
avatar
By jonazax1717
20th Jun 2020 14:32

Yeah, had multiple people i work with on the wrong code, some students who cant afford to pay rent because, just smells funny,

Thanks (0)
Replying to jonazax1717:
avatar
By Matrix
20th Jun 2020 14:34

Others have given great advice.

Did you get a P45 when you left? This is what you need to chase now.

I am sure that, if your ex employer was failing to send in payroll submissions then they weren’t able to make claims for their furloughed staff. So they are the loser.

Thanks (0)
Replying to Matrix:
avatar
By jonazax1717
20th Jun 2020 14:45

not left yet, on a zero contract, and funny enough got no hours this week so looking elsewhere

Thanks (0)
Replying to jonazax1717:
avatar
By Matrix
20th Jun 2020 14:54

OK well when you leave they should give you a P45 which you then give to your new employer and the tax will be adjusted, so the overpaid tax will be refunded through your pay. If you don’t get a P45 then you will need to follow the various advice above to resolve.

Thanks (1)
avatar
By legerman
20th Jun 2020 16:03

Did you complete a new starter form when you started the job? (The manager may have inputted the details onscreen at the induction) Did you put (or say) No job since 5th April. Have had job since 6th April but not working now, or Got other job at the moment? (paraphrased)

What is the date on your first payslip? (presumably paid monthly)

Thanks (0)
Replying to legerman:
avatar
By jonazax1717
20th Jun 2020 16:14

I Put C, so they assume they tax code they gave me is right BR (W1/M1), however, it's a new tax year, surely I`m entitled to the tax free allowance, or is it solely allocated towards my business and cant be mixed

Thanks (0)
Replying to jonazax1717:
avatar
By Paul Crowley
20th Jun 2020 19:33

Did you tell auntie that you told employer that you had another job C ?
C means employer uses BR because you told him that you have 2 jobs. That is what he is required to do by HMRC. You have not given HMRC enough time to decide how to code.
No you are not entitled to the tax free allowance, if you tell employers you have 2 jobs. HMRC assumes that your allowance is on other job. I always tell self employeds to enter C. Reason, if your have a profit of 12,000 and employment (claiming allowance) of 12000 then you will owe tax of £2,300 and not understand how the tax system let you down so badly.

Forward a link to your question to auntie and she will explain.

Is auntie your accountant?

Thanks (0)
Replying to Paul Crowley:
avatar
By jonazax1717
20th Jun 2020 21:42

Hi Paul, apologies for the late response been on a shift.

Thank you for this response, this clarifies that the tax code is probably correct.

In response to

"Did you tell auntie that you told employer that you had another job C ?"

no, i don't think I did .

&
"Is auntie your accountant?"
Yes she is, only briefly had a chat.

So does this mean essentially any second job I get will be taxed 20%, due to me being self-employed, even if my profit was less than 12,000 last year?

Just wanted to say thank you for the responses to, helps me understand this a lot better

Thanks (0)
Replying to jonazax1717:
RLI
By lionofludesch
21st Jun 2020 17:44

Quote:

So does this mean essentially any second job I get will be taxed 20%, due to me being self-employed, even if my profit was less than 12,000 last year?

You're probably going to have to wait until you submit your 2020/21 tax return now.

The up side is that, actually, you might owe this tax anyway. Who knows till you do your self-employed accounts ?

Thanks (0)
Replying to lionofludesch:
avatar
By Matrix
21st Jun 2020 17:53

He could tick the box to say this is his only job when he completes the new starter declaration for his new job and then the tax will be refunded through PAYE.

Thanks (0)
Replying to Matrix:
RLI
By lionofludesch
21st Jun 2020 18:03

Quote:

He could tick the box to say this is his only job when he completes the new starter declaration for his new job and then the tax will be refunded through PAYE.

Yes, if he gets a P45. And if he gets another job.

Thanks (0)
Replying to lionofludesch:
avatar
By Matrix
21st Jun 2020 18:07

He said he has already got another job and I advised him to obtain the P45 but he said he hasn’t left yet.

Thanks (0)
Replying to Matrix:
RLI
By lionofludesch
21st Jun 2020 18:16

Quote:

He said he has already got another job and I advised him to obtain the P45 but he said he hasn’t left yet.

Yes, you're right, of course.

But can he hand in that P45 with its BR code and then give his new employer a New Starter form claiming a 1250L code ?

If I werre acting for the new employer, I'd go with the P45 and see if HMRC sent a new code out.

Thanks (0)
Replying to lionofludesch:
avatar
By Matrix
21st Jun 2020 18:21

Yes you are probably right, I would do the same.

The main issue concerning him was that no payroll submissions have been made. Once this is resolved (by getting or chasing up a P45 using your advice) then he can decide if he calls HMRC to adjust the tax code to include the self employment or not.

Thanks (0)
Replying to jonazax1717:
avatar
By Paul Crowley
20th Jun 2020 19:42

Legerman did ask date of first payslip for a very good reason. It would be kind and polite if you replied.

Is auntie an accountant in practice? Does she have clients that she prepares accounts for and deals with their tax affairs?

Thanks (0)
Replying to Paul Crowley:
avatar
By jonazax1717
20th Jun 2020 21:44

date of the first pay slip was 05 of may 2020

Thanks (0)
Replying to jonazax1717:
avatar
By legerman
21st Jun 2020 00:18

Quote:

date of the first pay slip was 05 of may 2020

Thanks. I would have thought this would have appeared on your paye record by now, but HMRC are up to their eyes with corona stuff at the moment, so possibly theres a delay. If you do resign and get your P45, the employers PAYE no will be on it, so at least you'll get it that way if all else fails.

I had a feeling you had ticked box c, but just for reference next time, if s/e is your only other current income, tick box a or b (b in your case for 20/21 as you have now had another job.) The reason being is that s/e is not a job as far as the form goes.

Thanks (0)
Replying to jonazax1717:
RLI
By lionofludesch
21st Jun 2020 07:15

Quote:

I Put C, so they assume they tax code they gave me is right

Bless me. It's all coming out now, isn't it?

This is a little nugget of information that you held back until now.

Thanks (0)
avatar
By whitevanman
21st Jun 2020 00:05

Some of what follows may already be known to / by you. Apologies for any duplication.
Employers are usually, required to operate PAYE when paying employees. To do so, with new starters, they follow some simple steps (described above by others).
If you have another source of income and fill in C on the new starter form, the employer operates BR. This avoids, in most cases, any underpayment. This will not change when a new tax year starts.
The employer has no right to do anything other than what he has done. If the BR code needs changing, only HMRC can do so. They need to know who your new employer is (name and address as a minimum). They also need you to tell them what income you have and how you would like your tax free allowance allocating. For example, say the total tax free allowance is £12k. You have a self employment where you estimate you will have £5k taxable. You also work in a P/T job earning £9k. You could ask for £9k to be given against the P/T job and the balance of £3k to your self-employment. You could ask for £5k to be given against the SE, leaving £7k against the P/T job.
Most would go for the first split because the tax on SE is due later but it depends on your own position and what best suits you.
None of this can happen till you speak / write to HMRC with the relevant info.
The other important thing to understand is what a franchise is / is not.
In so far as concerns your issues, the franchise is NOT the same business as the trading style. So, I might own and run a McDonalds franchise. It is my business. I employ the staff and I am responsible for paying wages and operating PAYE. None of this is the concern of McDonalds or any of their employees.
So, when you say you have emailed people, are they the correct people? Or are they employees of the Franchisor business (McD in my example)?
You need to try to find the PAYE reference under which your employer submits his PAYE records and the obvious way to do that is to ask. But ask the right people. Others have given some examples.
If you have decided to cease this employment or do so before you resolve the current problem, you should get P45 details when you leave and that should show the PAYE ref. You will then have the info you need to pass to HMRC to sort it all out.
Remember, you may have a similar problem with your new employer and the same comments will apply.
I would not suggest that your employer is doing or has done anything wrong. What I would say is that you should get a pay slip each week (or whatever) showing details of pay, tax and NIC deducted. You must keep these as they are evidence that you have suffered the deductions and could be needed at some later time.

Thanks (0)
avatar
By Paul Crowley
21st Jun 2020 18:27

Are you aware of SEISS. Taxable grant for self-employeds
HMRC will have contacted you
Deadline approaching.

Thanks (0)