PAYE90020 - Reconcile individual: underpayments: PAYE directions

If an employer fails to deduct the correct amount of PAYE from an employee바카라 사이트™s earnings, the employer is liable for the amount under-deducted. The underpayment should be recovered from the employer not the taxpayer, unless HMRC makes a PAYE direction.

Regulations 72(5) and 81(4) of the Income Tax (PAYE) Regulations 2003 govern the making of directions, which can be made if

  • The employer took reasonable care to comply with the Regulations, and the failure to deduct the correct amount was due to an error made in good faith (regulation 72(5) condition A - the 바카라 사이트˜honest mistake바카라 사이트™)
Or
  • The employer cannot pay the liability (for example due to insolvency, ceased trading) and the taxpayer knew that the employer had wilfully failed to deduct the correct amount of PAYE (regulations 72(5) condition B and 81(4) condition A - the 바카라 사이트˜deliberate failure바카라 사이트™)

PAYE directions are made centrally by authorised officers in

  • The PAYE Errors Unit (바카라 사이트˜honest mistake바카라 사이트™ cases), see PAYE92050 
And
  • Teams in Specialist Investigations (바카라 사이트˜deliberate failure바카라 사이트™ cases) see the Specialist Investigation website and INS8101 onwards

You can find further information in the following subjects

  • 바카라 사이트˜Revision of employer바카라 사이트™s returns바카라 사이트™ at PAYE92060 
  • 바카라 사이트˜PAYE errors unit (PEU)바카라 사이트™ at PAYE92050 
  • 바카라 사이트˜Under-deductions - action required in service teams바카라 사이트™ at PAYE92066Â