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HMRC internal manual

Compliance Operational Guidance

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HM Revenue & Customs
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Supporting Guidance: employer compliance: guidance by subject: settlement: direction under regulation 72F: action by caseworker - making a direction

Once the liability has been agreed and the SA position checked (COG915285) you will be in a position to make any directions. A direction must be made in writing in the form of a notice to both the employer and the employee stating

  • the date the notice was issued
  • the amount (or amounts) within Regulation 72E(1)(b) to which it relates, and
  • which of the conditions A, B or C have been met.

When you have used a representative sample to determine the amount of tax which appears likely to you to have been self assessed, the direction notice you send to the employee only has to specify the employment in respect of which the relevant payment was received.

Where the direction notice only specifies the employment in respect of which the relevant payment was made, if an employee

  • appeals against the direction
  • attempts to include tax the employer ought to have deducted as an adjustment under Regulation 185, or  
  • makes an overpayment relief claim under Schedule 1AB TMA 1970 which includes an adjustment for a PAYE credit in relation to the relevant payment for which the direction was made

HMRC can issue a further direction notice specifying the amount actually paid by that employee.  

The notice to the employer will specify the total amount of tax which appears likely to you to have been self assessed by one or more employees.

There is a notice to issue to the employees to fit each of the conditions see COG915305 - Submission to Authorising Team.

Note: As any of the conditions can be met you only need to send one notice to the employee even if more than one condition has been met.

There may be situations where, for the same year, one condition is met for part of the relevant payment or payments and a different condition for another part. In these circumstances you should adapt the direction letter within COG915305 to quote each condition.