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Cash challenge

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01 November 2011

Issue: 4328 / Categories: Forum & Feedback , Employees , Income Tax

An employer has, to some extent, remunerated its employees using cash withdrawn from the business. It must now pay previously unpaid PAYE liabilities

Our client is a sole trader and is in business as a manufacturer of widgets.

He has been subject to an HMRC investigation and among other things it has been found that he has been paying cash overtime to some of his employees and not accounting for PAYE appropriately.

The overtime has been funded out of cash drawings made by our client from the business.

The under-declarations with regard to PAYE go back to 2002/03 and have now been assessed by way of Regulation 80 determinations for income tax and a statement by letter in respect of the National Insurance contributions.

There are other aspects of the enquiry involving VAT evaded as well.

We made a claim on 1 April 2011 under TMA 1970 Sch 1AB that the self-assessment returns for 2006/07 ...

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Cash challenge

© Copyright LexisNexis 2024. All rights reserved.

01 November 2011

An employer has, to some extent, remunerated its employees using cash withdrawn from the business. It must now pay previously unpaid PAYE liabilities

Our client is a sole trader and is in business as a manufacturer of widgets.

He has been subject to an HMRC investigation and among other things it has been found that he has been paying cash overtime to some of his employees and not accounting for PAYE appropriately.

The overtime has been funded out of cash drawings made by our client from the business.

The under-declarations with regard to PAYE go back to 2002/03 and have now been assessed by way of Regulation 80 determinations for income tax and a statement by letter in respect of the National Insurance contributions.

There are other aspects of the enquiry involving VAT evaded as well.

We made a claim on 1 April 2011 under TMA 1970 Sch 1AB that the self-assessment returns for 2006/07 ...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Subscribe Now...

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.

Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

Issue:

4328

Categories: Forum & Feedback [1] , Employees [2] , Income Tax [3]

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