This blog post aims to help in answering the question of how can one find out if their employer is paying their tax. While we will mainly focus on how salaried individuals can check to confirm their tax payment status under the PAYE system, we will also explain the details of the process involved in using your online Personal Tax Account for the purpose. In the end, we will review the steps that one can take if their employer has paid their tax with an incorrect amount.

How Can I Find Out If My Employer Is Paying My Tax?

If you need to confirm whether or not your employer is paying your income tax through their PAYE system, you should check your Personal Tax online on the HMRC’s website. This account is generally updated within 6 working days after an income tax payment has been received.

To check your tax payment status through your Personal Tax account, you will need to access the information using your Government Gateway user ID and password. In case you don’t have a Personal Tax account, you can use your Government Gateway user ID and password to set it up.

Another option is to call the HMRC helpline on 0300 200 3300 if you currently live in the UK and +44 135 535 9022 if you live outside the UK. Calls are received by them between Monday and Friday from 8 am to 6 pm. Otherwise, you can also download and access the HMRC app to check your tax payment status.

If you have started working for the first time, your employer would have asked you to fill out a Starter Checklist (previously known as the P46 form). If you have recently switched workplaces, there is a possibility that you haven’t been able to hand over your P45 form to your new employer due to which your Starter Checklist is incomplete. This can cause a potential delay in including your details in your employer’s PAYE system.  

You can also refer to the tax code assigned to you by the HMRC which appears on your payslip. This tax code indicates the amount that should be deducted from your income and paid to the HMRC by your employer. 

You can use these documents to verify whether or not your employer has included you in the PAYE system for income tax payments. That said, your employer cannot delay your income tax deduction and onward payments to the HMRC on purpose. If they do so, they can face legal action or may have to pay the contributions from their account.

How Can I Use My Personal Tax Account To Find Out If My Employer Is Paying My Tax?

To find out if your employer is paying your tax under the PAYE system, you can access your Personal Tax Account by following the below-mentioned steps:

Step 1: You can start by logging into your online Personal Tax Account and using your Government Gateway user ID and password to log in. You will be directed to the sign-in page; where you can click on the “Start Now” tab to proceed further. 

If you are registering for a personal tax account for the first time, you will need to register yourself using your Government Gateway user ID and password. You will need to provide details of your National Insurance number, mobile phone or landline number and email address. You will also need to prove your identity. For this, you may need one of the following documents:

  • bank account details
  • P60 form
  • 3 most recent payslips
  • Passport with your name, number and expiry date

If you have already registered your PTA account you can click on the “continue” tab to go to the next step.

Step 2: You will be assigned a 6-digit access code which you can receive as a text message on your mobile device or through an automated voice call on a landline. You will need to use this access code to proceed further.

Step 3: you will be asked to enter personal information including your name, National Insurance number and date of birth. Once you have entered these details, you will be asked to prove your identity by answering questions about your payslip, UK passport of P60. You should choose the most appropriate option. If you live and work in the UK, you can choose any of these, but if you work outside the UK, it may be advisable to choose the UK passport option.

Step 4: You have now successfully logged into your Personal Tax Account which can be used to check the status of your tax payments as well as to update any information.

What Will Happen If My Employer Has Not Paid My Tax Correctly?

While the PAYE system calculates the amount of tax due on an employee’s wages without much error, if your employer has not paid your tax correctly, you can rectify this error when you get a P800 form at the end of the tax year. This form is sent by the HMRC to all salaried individuals so that any under or overpayments of taxes can be corrected.

If you have experienced any of the following situations during a tax term, there is a possibility of error in your tax calculation:

  • employed at more than one job
  • claiming more than one pension
  • receiving a taxable state benefit untaxed income
  • changed jobs or retired
  • withdrawing income from pension flexibly
  • partner or spouse has died
  • receiving benefits or payments from an employer in addition to regular income
  • claiming additional allowances or expenses
  • either left the UK or arrived in the UK in the middle of a tax term

In case of an error has caused your employer to overpay or underpay your taxes under the PAYE system, the HMRC will send you a P800 form which you can check for calculations. If you need professional help from a tax adviser, you should seek a personal tax adviser. Their services may cost you between £25 and £35 per hour.

On the other hand, if you think that there is an error in your tax calculation but you have not been issued a P800, you should contact the HMRC.

Conclusion:

The content shared in the above article helps us to conclude that while there are a few ways to find out if your employer is paying tax, a salaried individual may find it most convenient to access their Personal Tax Account online to check their tax payment status.

References:

Check your Income Tax for the current year – GOV.UK

Pay employers’ PAYE: Check your payment has been received – GOV.UK

Accessing your Personal Tax Account: step by step instructions

What happens if I do not pay enough tax?