ECH10105 - Employer Support Team - Regulation 80 Determinations and Section 8 Decisions

Most employers will settle an underpayment arising from an intervention by means of a contract settlement – ECH22000 onwards.

However where a contract settlement cannot be agreed recovery by the formal route will be necessary.

For PAYE tax this involves issuing a Regulation 80 ( ECH22090) determination which also gives the employer the right to appeal.

For National Insurance a Section 8 Decision ( ECH22091) will be needed to give the employer the right to appeal.

It is important that whenever Reg 80 Determinations or Section 8 decisions are issued that consideration is also given to issuing a formal determination for any penalty that may be due ( ECH22090 & ECH22091).

Whereas a Regulation 80 Determination protects HMRCs claim to the PAYE due/disputed this is not the case with a Section 8 Decision. This only provides the Employer/Engager the right to appeal the decision. You must also consider protecting HMRCs claim to the NIC by issuing a Protective Claim preceded by the appropriate warning letter (ECH22131).

The EST, where practicable, will be responsible for issuing all Reg 80 Determinations, Section 8 decisions and Protective Claims arising within Local Compliance.

Guidance on issuing Regulation 80 Determinations is in the Employments Procedures Manual (EPM) at EPM3850 onwards.

Although this is an old manual and refers to regulation 49 determinations and pre-SAFE accounting processes, it is still relevant. However the process at ECH22093 should now be followed.

Guidance on issuing Section 8 Decisions is in the Decisions and Appeals Guide.

Guidance on issuing a Protective Claim can be found at ECH22131.