Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Coding misjudgment

20 March 2017
Issue: 4592 / Categories: Tax cases

Champneys Tring Ltd (TC5685)

Wrong code applied by employer

An employee worked as a full-time receptionist at Champneys from July 2013 to February 2014. Under her contract she was not permitted to take on another job but she had begun work for another business in 2010 and continued to work there during 2013-14.

Champneys issued the employee a P46 or starter checklist and paid her on the basis that statement A applied (that it was her first job since the previous 6 April). This resulted in the use of tax code 944L and the employee underpaying tax.

The employee told HMRC the underpayment was the employer’s fault because she had ticked statement C on the P46 that she had another job. HMRC followed this up with Champneys but it did not respond so the department issued the employer a determination under reg 80 of the Income Tax (PAYE) Regulations 2003 to...

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:

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.

back to top icon