HMRC chases employee for employer's PAYE bill

In 2021 HMRC sought a bankruptcy order against the applicant – an employee of a medical practice - in respect of unpaid PAYE and National Insurance for £115 862. The individual had taken over the operation of PAYE from a previous employee who had not dealt with PAYE properly. She told HMRC that she was not responsible for the liability because she was the office manager. It was the partners of the practice who were responsible.

For reasons which are unclear HMRC acted on the basis that she was the employer and therefore was personally responsible for paying the PAYE arrears. There appears to have been no evidence to support HMRC’s position but the individual did provide evidence that she was an employee. However the bankruptcy petition continued to go through the court process and the applicant applied to have it annulled.

In the High Court the judge...