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HMRC internal manual

Debt Management and Banking Manual

Debt and return pursuit: PAYE: Regulation 72 (5) Income Tax (Pay As You Earn) Regulations 2003: completion of cases: if a direction is made

After the thirty day appeal period has lapsed, the caseworker should send a memo to the submitting office which confirms that the matter is concluded.

The memo should include the:

  • name of the employer
  • employer reference
  • employee’s name
  • employee’s National Insurance number
  • amount of tax
  • decision made.

Tell the submitting office to make a clear note on the employee’s NPS record that a direction has been issued and no credit is allowable and that the tax is payable.

The submitting office should ensure that the tax is recovered from the employee, either by inclusion in their tax code or on a voluntary basis.

If the submitting office does not deal with the employee, for instance in an EC case, you should send an urgent memo to the owning office to ensure no tax credit is given.

If the employee is within Self Assessment a note should be entered on their record confirming that a direction has been issued. Any attempt by the customer to amend their return to include a credit should result in HMRC making an enquiry based on the fact that the direction prevents such an amendment.