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.