PAYE72020 - PAYE operation: payments for PAYE purposes: doubts about whether payment counts for tax purposes

The meaning of payment, for tax purposes, is covered in the Employment Income Manual at EIM00500. Guidance can also be found in the Employer Further Guide to PAYE and NICs (booklet CWG2).

If the employer or employee has a genuine doubt and payment has not been made you should

• Follow Action Guide ‘Doubts About Whether Payment Counts for Tax Purposes’ PAYE72021 

If there is no doubt that liability arises, or an employee questions the deducted tax, tell the employee

• That the employer must deduct tax
• That the amount will be included in a review of their liability after the end of the tax year

If you cannot settle a case on these lines, send a full report to Personal Tax Product & Process, PAYE Technical, Shipley.