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Ridgecrest Cleaning Services Pendergate Ltd (TC5505)
Electronic communication of PAYE codes
The taxpayer underpaid PAYE tax for two employees in 2010-11 as a result of applying the wrong code. HMRC raised determinations under reg 80 of the Income Tax (PAYE) Regulations SI 2003/2682 to collect the tax from the employer.
The taxpayer appealed saying it had taken reasonable care to comply with the PAYE regulations and any error had been made in good faith. It asked HMRC to raise determinations under reg 72(5) which recovers the underpaid tax from the employee. HMRC refused. In its view once it had issued a reg 80 determination reg 80(3) prevented it issuing a direction under reg 72(5). The taxpayer argued that this was not the case and the appeal progressed to the First-tier Tribunal.
On the inter-play between reg 80 and reg 72(5) the tribunal concluded that its jurisdiction under the former did not include matters concerning...
