PAYE54050 - Employer returns: regulation 80 determinations: preparing the ground - dispute cases

Before you make a determination consider these points

• Where the employer seems likely to appeal, consult your Senior Employer Compliance Manager for advice

In a dispute over whether a worker was an employee, be sure of your ground. A Higher Officer must check whether

• there are enough facts on which to arrive at a judgement
• the facts support the view that the income is Employment Income.

The Employment Income Manual - EIM tells you how to decide whether a payment is Employment Income. If this point is not clear, seek advice from the PAYE NIC Technical Helpline.

If you already have a Self Assessment enquiry or amendment in dispute, leave open any appeals against them.

Aim to discuss the facts with the employee at an early stage in disputes between employee and employer.

Consideration of a Regulation 72(5) Condition A direction

In suitable cases consider first asking PAYE Errors Unit about PAYE failure made by an error. If there proves to have been an error, the PAYE Errors Unit may be able to make a Regulation 72(5) Condition A direction PAYE92066.

If such a direction is made then none of the PAYE tax can be included within a Regulation 80. You must charge the tax by amending the self assessment of the employee or by issuing a tax calculation and coding the underpayment.