HMRC internal manual

Debt Management and Banking Manual

DMBM678420 - Summary Proceedings (Sc): Small claims - defended claims for PAYE/NIC: Defences - claims for PAYE/NIC

Defended claims against employers - general

PAYE claims are based purely on the facts of what emoluments the employer paid and what tax he was liable to deduct or repay. Any defence put forward would dispute these facts. To uphold your claim you will have to prove the facts.

In most cases it should be sufficient to produce your certificates of debt as proof of your claim. However should the defender attempt to give evidence against these certificates then you will have to produce further evidence showing that the information on these certificates is correct. For example where the defender has returned the sum due on forms P35/P14 you will have to produce these forms as evidence of the claim and if the amount due differs from that shown on the returns then you will need to explain that difference. In cases where there are no returns you will need to give evidence from the source from which the certificate was obtained.

PAYE Regulations

Income tax deductible

  • from 6 April 2004 under the IT (PAYE) Regulations 2003 and
  • prior to that under the IT (Employments) Regulations 1993)

is recoverable from the employer “as if” it “has been charged” on him under Schedule E. As there is no assessment, and consequently no notice of assessment, the finality principles do not apply (DMBM678280).

Certain PAYE/SC regulations can be defined as follows and for ease of reference both the 2003 regulation and the corresponding 1993 regulation are detailed below:

Regulation Income Tax (Sub-contractors in the construction industry) Regulations 1993 Definition
Reg 2(1) (1993)    
Reg 2(1) (2003)   Any person paying emoluments is an employer
Regs 6(1), 29(3) and 31(4) (1993)    
Regs 21(1), 47 & 49 (2003)   On paying emoluments the employer is required to deduct or repay tax
  Reg 19(1) The amount is recoverable as if it was charged on the contractor by way of an assessment
Reg 54(1) (1993)    
Reg 84 (2003)   The tax is recoverable as if charged on the employer by way of an assessment under Schedule E
Reg 54(6) & (7) (1993)    
Reg 218(1), (2) & (6) 2003` Reg 19(6) & (7) The debt manager’s certificate is sufficient evidence that the amount specified is unpaid and due to the Crown


You will find a list of other relevant regulations at DMBM600020.