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Mothers’ Union (TC3414)
The taxpayer organisation operated the wrong PAYE code for one of its employees, leading to the worker underpaying tax.
HMRC issued a determination to collect the money from the taxpayer, which appealed, claiming it had not received an email from the Revenue providing the correct code.
The First-tier Tribunal noted an employer that registered for online filing accepted communications would be conducted electronically, unless otherwise stated.
The taxpayer agreed this to be true but said it had had problems with its systems and had not received the employee’s code email.
The judge said burden of proof of non-delivery lay with the taxpayer under Application of Income Tax (PAYE) Regulations, reg 196(1)(b).
The employer was responsible for using the correct code, and the organisation was liable to pay the tax because it offered no evidence the code notice had not been issued.
The taxpayer’s appeal was dismissed.
