An individual successfully appealed against a direction by HMRC to recover PAYE under-deducted by his former employer, as the employer was held not to have taken reasonable care to deduct the correct amount of tax from payments made.
The appellant left his previous employment in October 2008. His form P45 stated a tax code of 375L month 1. On 1 November 2008, the appellant commenced employment with AM, and provided them with his form P45, which AM forwarded to their payroll agent.
The appellant's pay was subsequently calculated as if he had no previous earnings in the tax year 2008/09 (i.e. the form P45 did not contain details of pay and deductions from his previous employer), which resulted in a PAYE under-deduction.
In addition, following correspondence with HM Revenue and Customs (HMRC), the payroll agent acknowledged that although they used the correct tax code, they omitted to operate it on a
