Burton v The Commissioners for Revenue & Customs [2009] UKFTT 320 (TC) (18 November 2009)

Burton v The Commissioners for Revenue & Customs [2009] UKFTT 320 (TC) (18 November 2009)

The appellant did not deliver a P45 or completed P46 to the employer; under the PAYE Regulations, the employer was only required to deduct tax at the basic rate. There was no failure by the employer to deduct tax in accordance with the regulations, and no adjustment is required under reg 101A. The appellant is liable for the underpayment of tax under s 59B TMA.

Citation
[2009] UKFTT 320
Parties
Appellant: Michael Burton; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
18 November 2009
Procedural Posture
Appeal / First Tier Tribunal (tax), Final Decision
Outcome
Appeal dismissed
Legal Topics
Income Tax, PAYE (pay as You Earn), Employment Income, Self Assessment, Employer's Statutory Duties, Employee Tax Liability
Tax Law Income Tax PAYE (pay as You Earn) Employment Income Self Assessment Employer's Statutory Duties Employee Tax Liability

Case Brief

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Parties

Michael Burton

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Appeal / First Tier Tribunal (tax), Final Decision

Legal Issues

  1. 1 Whether the appellant is liable for underpaid income tax on employment earnings where employer deducted tax at basic rate only under PAYE and failed to apply higher rate deductions.
  2. 2 Whether employer or employee bears liability for under-deductions under the PAYE Regulations and Taxes Management Act 1970.
  3. 3 Whether breaches of statutory duty by employer or HMRC affect the employee's liability for underpaid tax.

Ratio Decidendi

The appellant did not deliver a P45 or completed P46 to the employer; under the PAYE Regulations, the employer was only required to deduct tax at the basic rate. There was no failure by the employer to deduct tax in accordance with the regulations, and no adjustment is required under reg 101A. The appellant is liable for the underpayment of tax under s 59B TMA.

Court Disposition

Appeal dismissed