This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our privacy notice.

Company Liable For Under Deduction Of Tax From Employee Salary

By Mark McLaughlin, May 2015
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) )
Subscribe to the McLaughlin’s Tax Case Library to get instant access
to the Tax Case Library.
14 day free trial , 90 day money back guarantee
Subscribe

Related or similar articles

Sole Director Shareholder Was Liable For Company’s PAYE And NIC Debts
By Mark McLaughlin, July 2018
Director Shareholders Were Liable For PAYE And NIC Liabilities Of Company
By Mark McLaughlin, November 2016
PAYE: Security Was Required For PAYE And NIC But For Reduced Amount
By Mark McLaughlin, November 2016
Individual Who Was ‘Shadow Director’ And Employee Liable To Tax Not Deducted By Companies
By Mark McLaughlin, August 2015
Determinations Not Out Of Time Following Fraud By Employee
By Mark McLaughlin, September 2014