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HMRC internal manual

Compliance Operational Guidance

From
HM Revenue & Customs
Updated
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Supporting Guidance: employer compliance: guidance by subject: settlement: payment sought from employee

Exceptionally there are occasions when an employer is approached to settle liability but responsibility for payment is removed and placed on the employee or director by means of a direction and/or decision.

For Tax

  • Regulation 72(5) Condition A (COG915180) where HMRC are of the opinion that the employer took reasonable care and the error was made in good faith.
  • Regulation 72(5) Condition B (COG915185) where HMRC are of the opinion that the employee received employment income knowing that the employer has wilfully failed to deduct the amount of tax he was liable to deduct see INS8100.
  • Regulation 72F ((This content has been withheld because of exemptions in the Freedom of Information Act 2000) COG915245(This content has been withheld because of exemptions in the Freedom of Information Act 2000) ).
  • Regulation 81(4) Condition A or Condition B following an amount determined under Regulation 80(2) (COG915190).

For NICs

Regulation 86(1)(a)(ii) Social Security (Contributions) Regulations 2001 where

  • there has been a failure to pay primary contributions
  • the primary NICs were not deducted from the earner, and
  • the earner knows that the employer wilfully failed to pay them to HMRC.

Note: These two sets of Regulations do not mirror each other.

Section 121C Social Security Administration Act 1992 is the authority for Personal Liability Notices (PLN) and you can find guidance at NIM12201 onwards, but ignore the references to Cross Cutting Policy in NIM12209 and any queries should be referred to Insolvency and Securities (IS) part of Special Investigations (SI).