ECH22001 - Settlement: From Whom to Seek Settlement
Whether the employer or the employee is approached to settle
the liability depends primarily on who is responsible in law, but
there are some exceptions, see
ECH22097.
Generally the following guidelines apply for
settlement
Note
The employer is responsible in law for any failure to operate
PAYE properly and is required to make good any failure to deduct
tax.
In such circumstances, the ECO should
- not settle direct with an employee or director as
- the settlement is technically incorrect and
- it could harm HM Revenue & Customs position if any other PAYE failures by the employer come to light.
