National Insurance and Tax for Employees

We have seen multiple cases of clients who have had deductions from their payslips for National Insurance and Income Tax, but their employers have not been paying this to His Majesty’s Revenue and Customs (HMRC). 

Employers deduct tax and national insurance from the wages that they pay, if the employee earns over certain limits. They should calculate the National Insurance due and pay this to HMRC each month. Unfortunately, some employers deduct the tax and National Insurance and do not pay HMRC. 

A gap in National Insurance Payments can lead to a reduction to your State Pension, and unpaid Income Tax will need to be paid and you might be chased by HMRC for this.

If you are concerned that your employer is not paying your Tax or National Insurance, you can check your National Insurance and Tax records via HMRC’s website or speak to HMRC directly. 

If you have your payslips that show that you have had the National Insurance and Tax deductions from your total pay each tax year, then you can ask HMRC to credit you with the contributions deducted from your wages. 

If you do not have the correct payslips, you can formally ask your employer for these. By law, employers must give all employees and workers payslips on or before each payday.

Payslips must show:

• your earnings before and after any deductions

• the amount of any deductions that may change each time you’re paid, for example tax and National Insurance

• the number of hours you worked, if your pay varies depending on time worked

You can report tax fraud to HMRC.