Lack of records lands employer with hefty tax bill

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.