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HMRC internal manual

Compliance Operational Guidance

From
HM Revenue & Customs
Updated
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Alternative rights of recovery (PAYE directions): action after the warning letter: allowing sufficient time for representations

Once you have issued the warning letter and explanatory note allow (This content has been withheld because of exemptions in the Freedom of Information Act 2000) for representations (This content has been withheld because of exemptions in the Freedom of Information Act 2000) to be made.

If no response has been received attempt to contact the employee by telephone to ensure receipt of warning letter.

  • If you speak to the employee take the opportunity to discuss matters using COG932000 for guidance as necessary.

If a payment on account is received prior to a direction and decision being made send this to the Accounts Office with instructions to allocate to the PAYE scheme. Allocate proportionately between tax and NIC if appropriate.

  • Ask that an official receipt be issued to the employee (or agent if appropriate).
  • Write to the employee
    • accept payment without prejudice
    • respond to any additional points that have been raised
    • provide details of any (balancing) tax, NIC and interest still outstanding
    • advise that a direction and decision is being considered for the balance of unpaid tax and NIC.