[UK] HMRC botched new employee’s PAYE

An unfortunate error has come to light, HMRC reportedly issued an employer with an invalid regulation 80 determination to recover tax due from an employee’s earlier employment in a previous tax year. The employer went on to successfully challenge the tax demanded. The case is said to have demonstrated a multitude of errors on HMRC’s part. 

A new employee joined Sci-Temps Limited - an employment agency and an RTI employer since 2014/15 - in November 2015, during the 2015/16 year. In April 2016, HMRC changed that employee’s PAYE code for the 2016/17 year so Sci-Temps implemented the change. In September 2016, following a call with the employee, HMRC changed the employee’s code again. The changing codes and further complications led to the employee underpaying tax of £629 in 2016/17. HMRC pursued the unpaid tax. AccountingWEB examines the PAYE bungle.

An unfortunate error has come to light, HMRC reportedly issued an employer with an invalid regulation 80 determination to recover tax due from an employee’s earlier employment in a previous tax year. The employer went on to successfully challenge the tax demanded. The case is said to have demonstrated a multitude of errors on HMRC’s part. 

A new employee joined Sci-Temps Limited - an employment agency and an RTI employer since 2014/15 - in November 2015, during the 2015/16 year. In April 2016, HMRC changed that employee’s PAYE code for the 2016/17 year so Sci-Temps implemented the change. In September 2016, following a call with the employee, HMRC changed the employee’s code again. The changing codes and further complications led to the employee underpaying tax of £629 in 2016/17. HMRC pursued the unpaid tax. AccountingWEB examines the PAYE bungle.