The employer did not exercise reasonable care to comply with its PAYE obligations, and so liability to pay PAYE under deducted rested with the employer, rather than with the relevant employee.
A new employee commenced employment and provided the appellant with her form P45 on 18 January 2013. The previous pay and tax details were not entered on the payroll, and accordingly no tax was deducted in the period to 5 April 2013.
The employee subsequently disputed a PAYE tax calculation that HM Revenue and Customs (HMRC) sent to her, which indicated that her PAYE income tax for 2012/13 had been under deducted by £793.60. She wrote to HMRC, stating that she was unsure how the underpayment had arisen.
Following correspondence with the appellant, HMRC issued a ‘notice of refusal’ letter intimating that they had decided not to make a direction under the Income Tax (Pay As You Earn) )
