ECH22510 - Yield Recording: Failure to Operate - Closed Years
Where an employer has made payments to employees but has failed to operate PAYE and/or NIC the ECO should
- calculate and pursue the underpayment for closed years in all cases (This text has been withheld because of exemptions in the Freedom of Information Act 2000)
- calculate and pursue interest,
- consider penalties ( ECH21040),
- calculate a current year adjustment as in ECH9045.
- Claim the full amount of yield, including interest and penalties on ECS.
Where recovery for closed years is not appropriate the ECO should
- Advise the employer to correct current year records,
- Calculate a current year adjustment as in ECH9045,
- Claim the amount of the current year adjustment on ECS.
Where an irregularity is identified and the year(s) are still open the ECO should
