COG915245 - Supporting Guidance: employer compliance: guidance by subject: settlement: direction under regulation 72F - general

Employers are responsible for the correct operation of PAYE and are normally held responsible for any failures.

An employer who

• fails to deduct tax, or
• under-deducts tax, or
• fails to account for tax on notional payments from an employee

is liable for the tax underpaid.

Where there are grounds to believe that the worker to whom a relevant payment has been made has

• self-assessed tax on the payment, or
• made payments on account of tax, including CIS deductions

you must consider a direction under Regulation 72F.

Otherwise if tax is underpaid you should consider whether any of

• Regulation 72(5) Condition A (COG915180),or
• Regulation 72(5) Condition B (COG915185),or
• Regulation 81(4) Conditions A or B (COG915190)

are appropriate and follow the relevant guidance.