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.
- 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 COG931110 onwards.
- 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).
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. Any queries should be emailed to the mailbox shown at NIM12207.