PAYE71030 - PAYE operation: aspects of PAYE operation – taxpayer: directors of companies in liquidation

A liquidation cannot normally be completed until the employer's PAYE liability to the date of the winding up order has been agreed. Therefore, give prompt attention at every stage to cases involving directors of companies in liquidation.

When a form INSOL 200 has been received, telling you of a company liquidation, review each director’s file at once. Take the following action

• Notify the liquidator on the lines of the letter in subject ‘Insolvency of Employer’ PAYE21130
• Inform the Insolvency Claims Handling Unit (ICHU), Newcastle of any failures by the company to operate PAYE on directors' earnings
• If the PAYE income is dealt with elsewhere