If an employer fails to account for the tax due within 14 days of the end of any income tax month, or quarter if appropriate, as required by the Income Tax (Pay As You Earn) Regulations 2003, reg. 38 and the collector is unaware of the amount due, he may give a notice to the employer under reg. 77(4) requiring him to provide within 14 days a return showing the amount of tax he is liable to pay to the collector under reg. 68 in respect of the period.
From this information the collector will calculate the tax and NIC due from the employer and prepare a certificate of the amount due. Such a certificate will establish a debt in respect of which the collector may then take proceedings.
It should be noted that this procedure is not restricted to the situation where the employer makes no payment at all. The collector may take such action even if the employer has made some payment but the collector is not satisfied that the full amount due has been paid. There is no appeal against a reg. 77 notice and the debt remains collectible until the employer provides information which shows it to be excessive.
If the employer fails to pay the tax due under reg. 68 or 77, it is provided by reg. 84 that the provisions of any enactment relating to recovery of income tax charged under ITEPA 2003 shall apply to that tax as if it had been charged in an assessment on the employer under that Act. The effect of this is to apply TMA 1970, s. 61, 65 and 66 which regulate the proceedings for the recovery of tax by way of distraint, or in the magistrate’s court, or in the county court.