What Happens If My Employer Doesn’t Pay My Tax?

Are you wondering what will happen if your employer doesn’t pay your tax in the UK? If you’re an employee, it’s important to know the answer to this question. It is the responsibility of employers to deduct and pay taxes for their employees, but unfortunately, this doesn’t always happen. In this blog post, we’ll look at what you can do if your employer doesn’t pay your tax in the UK.

What Happens If My Employer Doesn’t Pay My Tax?

If your employer doesn’t pay your taxes, it can have serious consequences. In the UK, employers are responsible for deducting income tax and National Insurance from their employee’s wages and then paying this to HM Revenue & Customs (HMRC). If an employer fails to pay the correct amount of taxes due, the responsibility for the tax liabilities rests with them; for which they may have to face some serious consequences.

If your employer does not pay your tax, they should be able to provide an explanation or make arrangements to rectify the situation. Otherwise, once the HMRC finds out penalties for late payments cannot be avoided by them.

Once the HMRC learns about your employer not paying your tax, will first look into whether your employer is at fault for not paying your tax or if there was a genuine error. If they find that your employer is at fault, they may require them to pay back the unpaid tax with interest. 

If the HMRC find that there was a genuine mistake made by your employer, they may waive any penalties and offer to spread out the payment of the unpaid tax in instalments.

If HMRC can’t get your employer to pay, they may take enforcement action. This could include taking legal action against your employer and issuing fines or penalties. HMRC may also consider asking you to pay the tax liabilities yourself. If this is the case, you will likely be able to get a refund from your employer once the matter is resolved.

If you do have to pay the tax yourself, it’s important to keep track of all communication with HMRC and ensure that you follow all their instructions. This will help ensure that you don’t face any additional penalties or interest charges.

In summary, if your employer fails to pay your taxes, it’s important to contact both your employer and HMRC as soon as possible to resolve the issue. Your employer may be liable for any unpaid taxes and penalties, or HMRC may ask you to pay the tax yourself. Either way, it’s important to keep track of all communication and comply with any instructions given by HMRC to avoid any additional charges.

What Should I Do If My Employer Hasn’t Paid My Tax?

If you suspect that your employer hasn’t paid your tax, the first thing you should do is contact HMRC. You can call the HMRC helpline at 0300 200 3300 if you live in the UK or at +44 135 535 9022 if you live abroad. Calls should ideally be made between Monday and Friday from 8 am to 6 pm. You can then speak to an advisor who can help you to understand the situation and what steps you need to take next.

It’s important to remember that you, as the employee, are responsible for paying your tax liabilities and any unpaid taxes should be taken up with your employer directly. 

HMRC may investigate if they think that your employer has not complied with their obligations and they could even pursue criminal sanctions against them. Your employer may also be liable for a penalty of up to 100% of the unpaid tax, interest charges, and even court costs. 

If your employer is not able to pay the tax bill immediately, they can set up a payment plan with HMRC. You must contact HMRC as soon as possible so that you can ensure that your employer is compliant with their legal obligations. 

If your employer doesn’t respond or refuses to pay the tax, then you should consider taking further action. This could include speaking to an experienced solicitor or pursuing a tribunal claim against them. 

It is important to remember that you have rights when it comes to ensuring that your employer pays the correct amount of tax. So make sure that you understand your rights and take appropriate action if necessary.

Can I Check If My Employer Has Paid My Tax?

Yes, you can check if your employer has paid your tax by accessing your Personal Tax Account. To do this, you will need to use 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. 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 not been issued the Starter Checklist, you should inquire about it from your employer so that you do not miss out on your income tax payments.

In case you have recently switched workplaces, you should have handed over your P45 form to your new employer. If you have not been able to do so, this could be the reason why your Starter Checklist is incomplete. This can be the reason for a potential delay in including your details in your employer’s PAYE system and them being unable to pay your tax on time.

Another way to check if your income tax payments are up to date is to 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 the details mentioned on your payslip and compare them to your bank statement to check whether income tax has been deducted from your wages before they were transferred to your account.

If you are still not sure, you may need the services of a financial advisor to guide you on further details regarding your income tax payments.


The above discussion makes it quite clear that under the PAYE system, it is the employer’s responsibility to deduct taxes from their employee’s wages and pay the required amount to HMRC. if they fail to do so, they will be solely responsible (and not the employee) for any penalties that are levied as a consequence.


Problems with employers

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

What happens if I do not pay enough tax?