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HMRC internal manual

Debt Management and Banking Manual

Debt and return pursuit: PAYE recovery and associated processes: Regulation 72 (5) directions: Working the case: the role of the officer

The officer should:

  • review all the evidence relating to the error and any other information provided
  • confirm that the requirements for considering a direction are met and there has been a failure to deduct tax (not just a failure to pay HMRC)
  • find out the full extent of the employer’s failure to deduct
  • consider the employer’s overall operation of PAYE and compliance.

Consulting the employee

Regulation 72(5) Condition A is concerned with the employer’s explanation of the failure to operate PAYE correctly. It will be rare that you require information about the employers operation of PAYE from the employee. However, if the employee has contributed evidence as to why the under deduction arose which conflicts with the employer’s explanation you should clarify the situation with the employer before a decision is made.