AccountancyAge reports that HMRC has had to back down in its fight to reclaim unpaid PAYE contributions in a first-tier tribunal, after already writing to the appellant that it had no tax to pay.
HMRC argued that Walkers’ Baggage Transfer, a company that transports luggage of holidaymakers exploring Hadrian’s Wall, had not accounted for the £727.80 in PAYE contributions properly due for one of its drivers.
The driver was present in the court and swiftly countered HMRC claims with a letter sent by HMRC.
“I believe that your employer operated Pay As You Earn (PAYE) correctly using the information they had at the time. This means that I will not be asking your employer to pay the £727.80 tax due.”The judge quickly came to his conclusion and found that there was an “obvious conflict between the terms of this letter and the stance of HMRC”, ruling in favour of the driver.
What a shambles!
Tax does have to be taxing.
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