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HMRC internal manual

Employment Income Manual

Assessments, appeals and other procedures: PAYE failure: regulation 80 determinations

Regulation 80 S1 2003/No 2682

Regulation 80 is used mainly where an employer has failed to deduct tax under the PAYE system and there has been no previous direction that the tax in question should be recovered from the employee. (Where there is a PAYE failure then, unless there is a direction, the responsibility for the tax lies with the employer even though the employee has received a gross amount.) HMRC can make a determination of the tax due from the employer, and the employer has the normal rights of appeal. The PAYE Manual and Compliance Operational Guidance (COG) manual contain advice and procedures relating to both directions and determinations.

As well as being used as a straightforward mechanism to collect tax, a determination can be used as a vehicle to take contentious points to the First-tier Tribunal and the Courts. For example, it can be used in disputes as to whether persons are employed or self-employed, or whether particular payments are earnings.