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Lack of records lands employer with hefty tax bill

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Planet Double Glazing Limited was fined £58,822 for unpaid tax and NIC – plus penalties for failing to keep accurate employee records or operate PAYE correctly.

4th Sep 2020
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Planet Double Glazing Limited (PDG) was incorporated in May 2009 with Johal as the sole director and shareholder. Since August 2010, PDG has manufactured, supplied and fitted double glazed windows and doors.

Requirements under PAYE

The years under appeal spanned 2011/12 to 2014/15 (TC07764).

Prior to the introduction of real-time information (RTI) reporting requirements in April 2012, unless PDG had evidence in a P46 or P45 which meant that an employee could be treated otherwise, all payments of employment income should have been subject to the PAYE deductions and reporting system.

After the introduction of RTI, as there was at least one PDG employee earning above the NIC lower earnings threshold, the company should have reported payments made to all employees regardless of whether their earnings were above the lower earnings threshold.

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Replies (4)

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By meadowsaw227
07th Sep 2020 10:08

Presumably the "agent" when compiling the paye rti filing/accounts etc from carp records informed HMRC on an annual basis the the figures were make believe.
If not he is just as culpable.

Thanks (1)
RLI
By lionofludesch
05th Sep 2020 07:27

Oh dear.

How sad.

Never mind.

It's nice to know that HMRC still do the occasional bit of compliance work.

Thanks (2)
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By petestar1969
07th Sep 2020 13:14

This reminds me of a client one of my former employers used to act for, a cleaning company. At best 50% of the employees produced P46's or P45's when they started but he insisted that all employees were processed on a standard PAYE code rather than BR.

Thanks (0)
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By ds
07th Sep 2020 15:51

I bet most of the work went cash in hand and the Revenue are only sniffing the tail ends of what went through the factory door and what cash went under the table.

Thanks (2)