An employer was not liable for underpayments of PAYE in respect of two employees resulting from tax code changes sent electronically, as the employer had not consented to HMRC sending the notices electronically.
The appellant cleaning services company employed hundreds of cleaners. HM Revenue and Customs (HMRC) sent PAYE tax code notifications electronically for two employees, which changed their codes. However, the appellant overlooked the tax code changes, resulting in tax underpayments for both employees in 2010/11.
HMRC subsequently issued two directions to the appellant under the Income Tax (Pay As You Earn) Regulations 2003, SI 2003/2682, reg. 80, seeking recovery of the underpaid PAYE. The appellant appealed.
It was argued that HMRC, in making the reg. 80 determinations, deprived the appellant of the opportunity to seek directions (under SI 2003/2682, reg. 72(5)), and thereby the
