TJ Blanche v HMRC (No 4)

In TJ Blanche v HMRC (No 4) (TC01697 – 18 January) a company (D) began employing a part-time driver (B) in July 2003 and deducted tax at the basic rate. From September 2005 to January 2006 B worked for another company (H) which gave him a form P45 indicating that his tax code with H was 489L. He remained on D’s books and resumed working for D in January 2006. For the rest of 2005/06 D continued to deduct tax from B’s wages at the basic rate but for 2006/07 D began using code 503L. The use of this code led to an underpayment in 2006/07 and 2007/08. HMRC initially sought to recover the additional tax due from D but subsequently issued a direction under Income Tax (PAYE) Regulations SI 2003/2682 reg 72(5) requiring B to pay the tax. He...