PAYE from an employee is liable for the tax underpaid.
By making a direction under Regulation 72(5) Condition A, the Employer Technical Team can relieve the employer of liability. Effectively the liability is transferred to the employee.
To do this the Employer Technical Team must be satisfied that the employer
took reasonable care to comply with the PAYE Regulations and
the failure to deduct the correct amount of tax was due to an error made in good faith.
More information can be found in the PAYE Manual at PAYE92050.
Action by Caseworker
If an employer asks for, or you consider a direction under Regulation 72(5) Condition A is appropriate, you should