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Employer did not fail to operate PAYE code correctly

By Mark McLaughlin, November 2020

The appellant company had not failed to operate a PAYE code despite not taking into account pay and tax details from a previous employment, and in any event HMRC’s PAYE determination would have been cancelled as the company had acted in good faith and taken reasonable care. 

In 2015/16, an employee (A) joined the appellant company. On 8 April 2016, HM Revenue and Customs (HMRC) changed her PAYE code, and the appellant implemented that change. On 9 September 2016, HMRC changed A’s code again, which was also implemented by the appellant.  

At the end of the notification was the heading ‘Previous pay and tax details’ followed by ‘Previous pay’ of £3,144 and ‘Previous tax’ of £0. Those figures related to an earlier

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