Supporting Guidance: employer compliance: guidance by subject: settlement: direction under regulation 72F: general
Employers are responsible for the correct operation of PAYE and are normally held responsible for any failures.
An employer who
- fails to deduct tax, or
- under-deducts tax, or
- fails to account for tax on notional payments from an employee
is liable for the tax underpaid unless HMRC make a direction under Regulation 72, 72F or 81.
Where it appears that an amount intended to represent tax on a relevant payment
- has been self-assessed as income tax, or
- has not been self-assessed but has been paid on account of income tax under Section 59A TMA or Section 559A of ICTA/Section 62 FA 2004 (treatment of sums deducted under CIS)
you must consider a direction under Regulation 72F.
You should also consider a direction under Regulation 72F if it appears likely to you that an amount intended to represent tax on a relevant payment has been self-assessed as income tax by one or more employees. COG915262 explains the circumstances when this may apply.
Otherwise if tax is underpaid you should consider whether any of
- Regulation 72(5) Condition A (COG915180), or
- Regulation 72(5) Condition B (COG915185), or
- Regulation 81(4) Conditions A or B (COG915190)
are appropriate and follow the relevant guidance.