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HMRC internal manual

Compliance Operational Guidance

Alternative rights of recovery (PAYE directions): further action when a direction seems appropriate: omissions - potential direction amounts

In completing form C500 up to now you have been recording information to enable you to determine the extent of the PAYE failure. You should now

  • calculate the ‘potential directions’ entries on form C500 along the lines of the following example.


If you are pursuing both Regulation 72(5) Condition B and Regulation 81(4) Condition A directions for the same year

  • complete the Regulation 81(4) Condition A columns first utilising appropriate amounts up to the pay and tax limits in the Regulation 80 determination
  • allocate any balancing omissions of pay and tax to the Regulation 72(5) Condition B columns.

Pay and tax column check

The column totals at the foot of form C500 are there simply to provide an arithmetic check and to give an overall picture of the maximum tax available for direction purposes. You can use the following simple check to make sure that your calculations are correct.

Except where column 9 exceeds column 5 and column 10 exceeds column 7

Column 5 =         Columns 9 + 14 + 16
Column 7 =         Columns 10 + 15 + 17


Where the P14, Full Payment Submission or Regulation 80 tax is partly paid

Column 7 =         Columns 15 + 17 + tax paid.


If column 9 has been left blank as in COG931600

  • leave columns 14 and 16 blank.