Debt and return pursuit: PAYE recovery and associated processes: Regulation 72 (5) directions: Making a decision: employer does not pay the underdeduction
If the employer does not appeal against the refusal notice and/or does not pay the underdeducted tax after 30 days, the caseworker should:
- phone the employer to request payment and warn the employer that recovery action will be taken to collect the PAYE tax if it remains unpaid after 14 days
- check to see if the employer has amended their P35 return or sent an amended FPS or EYU after 21 days.
If payment or an amended P35/FPS/EYU has not been received then formal recovery action is required to collect the PAYE.
The caseworker should issue a Regulation 80 determination for the underdeducted tax or refer the case to an office which can issue these determinations.
The caseworker should:
- send a memo to the submitting office advising that a direction has been refused and return any P400/P227 received with the memo
- advise the submitting office that the employee should receive a non-refundable credit for the tax underdeducted (if one has not already been given).
In Employer Compliance cases, you should advise the submitting office by memo to include the tax in a settlement and they will be responsible for making any Regulation 80 determinations with the employer.