should i receive wages from a personal bank account?

**cojak** · 15 October 2011, 11:17

This is a contractor's forum and i think you are a permanent employee. Your company is in trouble. He should not be paying you from a personal account because he will not be paying your tax for you (PAYE).

Go to a Citizen's Advice Bureau to get help.

**Robert Pearce** · 15 October 2011, 12:10

Originally posted by kro View Post

The company's bank account is in overdraft. The boss offered to pay my salary from a personal bank account.... should I agree for this? would it affect me somehow if I agree? If I don't, how willl he pay my wages then?

Assuming that you're an employee, the company that you work for obviously has cash flow difficulties. It's unusual to be paid by the director personally but it's fine as long as you still receive a payslip which shows PAYE/NI being deducted as normal. It's the employer's responsibility to pay the tax over to HM Revenue & Customs, which the director may also be paying personally.

I would talk to the director about the propects of the company. If this is a one-off and cash flow will improve in the near future, then fine; if the company is teetering on the edge, then you might want to start putting out feelers for a new job.

**xoggoth** · 15 October 2011, 16:42

Agree with RP. Until the bank calls in the overdraft and while the owner is willing to cover expenses the company is not technically insolvent but these are warning signs and I would not work for too long without payment. I lost money once myself by ignoring warning signs and just accepting excuses about late payments being due to errors.

If you are paid monthly, maybe you should insist on being paid weekly to minimise any losses if the company folds.

**SueEllen** · 16 October 2011, 08:20

Originally posted by cojak View Post

This is a contractor's forum and i think you are a permanent employee. Your company is in trouble. He should not be paying you from a personal account because he will not be paying your tax for you (PAYE).

True but it's better to get your wages out of him and then speak to the taxman.

From Direct Gov -

If you suspect your employer of not paying tax or National Insurance contributions on your wages you can report them in confidence using the Tax Evasion Hotline on Tel 0800 788 887.

Originally posted by cojak View Post

Go to a Citizen's Advice Bureau to get help.

CABs are very over stretched so telling someone to go there isn't actually very helpful as by the time they get an appointment it could be too late.

**Wanderer** · 16 October 2011, 15:13

Originally posted by kro View Post

The boss offered to pay my salary from a personal bank account.... should I agree for this?

Yes, take the money and sort out the tax later on. The alternative is that you may not get paid at all. Be prepared for the company to go bust though.

**Sockpuppet** · 16 October 2011, 20:58

Originally posted by cojak View Post

This is a contractor's forum and i think you are a permanent employee. Your company is in trouble. He should not be paying you from a personal account because he will not be paying your tax for you (PAYE).

Go to a Citizen's Advice Bureau to get help.

If you get a payslip with the correct details on it then it's his problem not the employees.

Granted it doesn't look good but I would take the cash.

should i receive wages from a personal bank account?