This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

Compliance Operational Guidance

Supporting Guidance: employer compliance: guidance by subject: Employment Status & Intermediaries (ES&I): regulation 80 determinations and section 8 decisions

Most employers will settle an underpayment arising from an intervention by means of a contract settlement - COG915000 onwards.

However where a contract settlement cannot be agreed recovery by the formal route will be necessary.

For PAYE tax this involves issuing a Regulation 80 (COG915150) determination which also gives the employer the right to appeal.

For National Insurance a Section 8 Decision (COG915155) will be needed to give the employer the right to appeal.

It is important that whenever Reg 80 Determinations or Section 8 decisions are issued that consideration is also given to issuing a formal determination for any penalty that may be due (COG915150 and COG915155).

Whereas a Regulation 80 Determination protects HMRCs claim to the PAYE due/disputed this is not the case with a Section 8 Decision. This only provides the Employer/Engager the right to appeal the decision. Caseworkers must also consider protecting HMRCs claim to NIC by issuing a Protective Claim preceded by the appropriate warning letter (COG915225).

In all cases Employment Status & Intermediaries (ES&I) will be responsible for raising all Reg 80 Determinations, Section 8 decisions.

Guidance on issuing Regulation 80 Determinations is in the PAYE Manual (PAYE) at PAYE54030 onwards. The process at COG915165 should be followed.

Guidance on issuing Section 8 Decisions is in the Decisions and Appeals for National Insurance and Statutory Payments manual.

Guidance on issuing a protective claim can be found at COG915225.