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HMRC internal manual

Compliance Operational Guidance

From
HM Revenue & Customs
Updated
, see all updates

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.