PAYE54270 - Employer returns: regulation 80 tax unpaid - direction under regulation 81(4) condition A or B

You can take special action in some cases where an employer delays payment of Regulation 80 tax. If any amount remains unpaid after 30 days refer the case to Special Investigations (SI) to consider a direction under Regulation 81(4) Condition A or B.

This action means HMRC can recover the tax from each director named in the determination.

When you recognise that unpaid Regulation 80 tax requires consideration under Regulation 81(4) you should supply the following information on each employee

• details any relevant self assessments
• an estimate if no assessments have been made
• details of any other instances of PAYE failure (by the director or the employer)
• any other relevant facts about personal circumstances, for example, whether bankrupt
• the private address.

• You should then send the case to the nearest SI office to the employer address.

These details should be sent as soon as possible. This will help SI to prepare a case under Regulation 81(4) Condition A or B.

SI normally review cases where

• tax under deducted by the employer exceeds £2000

and

• the employee has means to settle the tax.

SI will liaise with the employees’ Processing Office to make any necessary enquiries or amendments to employees self assessments

• finalising, where necessary, the assessing position
• releasing direction tax for collection through Self Assessment

SI will deal with all matters concerning the direction including the right of appeal but will conjoin any SA appeal so that if the case does end up at Tribunal both appeals are heard at the same time.