Newth Talks Tax: Is it reasonable for an employer to pass an HMRC fine on to an employee?
This was the query asked by Ian Gibson on 21 November 2007. At the time he was group financial controller of a company, but not a director.
Due to the CHAPS system failing at the bank a few months ago, the company defaulted on its VAT payment for that month. Now, due to an admitted error by Ian, a second default had taken place (once again one day late), and the company had been fined £3,000.
The managing director had decided that Ian should pay the company fine.