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Determinations of PAYE and decisions for NIC purposes affirmed as made to HMRC’s best judgement

By Mark McLaughlin, September 2020

PAYE determinations and NICs decisions based on HMRC’s best judgement and the presumption of continuity were affirmed along with penalties for careless behaviour.

The appellant company’s business was the manufacture, supply and fitting of double-glazing windows, doors and fittings from August 2010. The appellant had a sole director shareholder. There were no written employment contracts for any of the appellant’s employees. The appellant paid its employees wholly in cash. It started operating a PAYE scheme in March 2013.

The appellant did not keep any underlying records such as work sheets or deductions sheets to show who was employed at what time, the hours worked by employees, or what amounts were paid to employees in the relevant tax years.

HM Revenue and Customs (HMRC) made assessments (under SI 2003/2682, reg 80) and National Insurance contributions (NICs) decisions (under SSC(TF)A 1999, s 8), and imposed penalties on the

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